{
  "cells": [
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "MtO9f3JZicPX"
      },
      "source": [
        "# Pinecone Assistant - Context snippets\n",
        "\n",
        "The [Pinecone Assistant](https://docs.pinecone.io/guides/assistant/overview) `context_assistant` operation lets you directly retrieve relevant information snippets for your queries. Using the same set of files uploaded to Assistant, you can now alternate between `.chat()` and `.context()` requests and use Pinecone Assistant in different ways across different layers of your application stack.\n",
        "\n",
        "## Motivation\n",
        "\n",
        "The `context_assistant` operation is designed to enable two capabilities: 1) enable the use of Assistant with different LLMs (e.g., Llama 3.1) and 2) directly access retrieved relevant context information without a model reasoning step. The operation provides all the benefits of Assistant-- including parsing, chunking, and indexing on upload, as well as query planning, searching, and result aggregation on query—- while bypassing LLM reasoning and the associated transformation of the results."
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "rYgPZXcOmjon"
      },
      "source": [
        "## 1. Assistant setup\n",
        "\n",
        "Install the Pinecone Python SDK and import the packages."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": null,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "nc78Lq2kHG-v",
        "outputId": "a7832339-686a-4055-d738-56d5ff7f95d8"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "Note: you may need to restart the kernel to use updated packages.\n"
          ]
        }
      ],
      "source": [
        "%pip install -qU \\\n",
        "     pinecone==7.0.2 \\\n",
        "     pinecone-notebooks==0.1.1"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 4,
      "metadata": {
        "id": "zgrDfWygkSFP"
      },
      "outputs": [],
      "source": [
        "import os\n",
        "import json\n",
        "\n",
        "from pinecone import Pinecone\n",
        "from pinecone_plugins.assistant.models import Message"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "### Get and set the Pinecone API key\n",
        "\n",
        "We will need a free [Pinecone API key](https://docs.pinecone.io/guides/assistant/quickstart). The code below will either authenticate you and set the API key as an environment variable or will prompt you to enter the API key and then set it in the environment."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 5,
      "metadata": {},
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "Pinecone API key not found in environment.\n",
            "Pinecone API key saved to environment.\n"
          ]
        }
      ],
      "source": [
        "from getpass import getpass\n",
        "\n",
        "def get_pinecone_api_key():\n",
        "    \"\"\"\n",
        "    Get Pinecone API key from environment variable or prompt user for input.\n",
        "    Returns the API key as a string.\n",
        "\n",
        "    Only necessary for notebooks. When using Pinecone yourself, \n",
        "    you can use environment variables or the like to set your API key.\n",
        "    \"\"\"\n",
        "    api_key = os.environ.get(\"PINECONE_API_KEY\")\n",
        "    \n",
        "    if api_key is None:\n",
        "        try:\n",
        "            # Try Colab authentication if available\n",
        "            from pinecone_notebooks.colab import Authenticate\n",
        "            Authenticate()\n",
        "            # If successful, key will now be in environment\n",
        "            api_key = os.environ.get(\"PINECONE_API_KEY\")\n",
        "        except ImportError:\n",
        "            # If not in Colab or authentication fails, prompt user for API key\n",
        "            print(\"Pinecone API key not found in environment.\")\n",
        "            api_key = getpass(\"Please enter your Pinecone API key: \")\n",
        "            # Save to environment for future use in session\n",
        "            os.environ[\"PINECONE_API_KEY\"] = api_key\n",
        "            print(\"Pinecone API key saved to environment.\")\n",
        "            \n",
        "    return api_key\n",
        "\n",
        "PINECONE_API_KEY = get_pinecone_api_key()"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "a9xw6ukhYiIp"
      },
      "source": [
        "### Create a Pinecone Assistant"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 6,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "zu6uwvWJhIaX",
        "outputId": "94916c44-0e26-4117-9df6-3a99714df192"
      },
      "outputs": [
        {
          "data": {
            "text/plain": [
              "{'created_at': '2025-07-03T20:16:46.372597382Z',\n",
              " 'host': 'https://prod-1-data.ke.pinecone.io',\n",
              " 'instructions': None,\n",
              " 'metadata': {},\n",
              " 'name': 'my-cool-context-assistant',\n",
              " 'status': 'Ready',\n",
              " 'updated_at': '2025-07-03T20:16:48.275068083Z'}"
            ]
          },
          "execution_count": 6,
          "metadata": {},
          "output_type": "execute_result"
        }
      ],
      "source": [
        "# Set Assistant name\n",
        "assistant_name = \"my-cool-context-assistant\"\n",
        "\n",
        "pc = Pinecone(\n",
        "    # defaults to os.environ.get(\"PINECONE_API_KEY\")\n",
        "    # or uncomment and add the API key inline\n",
        "    # api_key = \"my_pinecone_api_key\"\n",
        ")\n",
        "assistants_list = pc.assistant.list_assistants()\n",
        "\n",
        "# Check that this Assistant does not already exist, if so, use it.\n",
        "\n",
        "if assistant_name not in [a.name for a in assistants_list]:\n",
        "    assistant = pc.assistant.create_assistant(assistant_name)\n",
        "else:\n",
        "    assistant = pc.assistant.Assistant(assistant_name=assistant_name)\n",
        "\n",
        "assistant"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "IAuTpFKdYuED"
      },
      "source": [
        "### Download an example PDF\n",
        "\n",
        "We will use Netflix Annual Report (10K) for 2016 that is available for download online [here](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001065280/7c37ae9c-ace5-4ad5-ab02-6b5e82c5ff8f.pdf)."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": null,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "gvGCFP_GW10-",
        "outputId": "258c90e5-b9ab-4a0e-d1fc-1ad5f3364c86"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "  % Total    % Received % Xferd  Average Speed   Time    Time     Time  Current\n",
            "                                 Dload  Upload   Total   Spent    Left  Speed\n",
            "100  564k  100  564k    0     0  1307k      0 --:--:-- --:--:-- --:--:-- 1310k\n"
          ]
        }
      ],
      "source": [
        "url = \"https://d18rn0p25nwr6d.cloudfront.net/CIK-0001065280/7c37ae9c-ace5-4ad5-ab02-6b5e82c5ff8f.pdf\"\n",
        "\n",
        "import requests\n",
        "\n",
        "response = requests.get(url)\n",
        "\n",
        "with open(\"netflix-10k.pdf\", \"wb\") as f:\n",
        "    f.write(response.content)"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "UFZG-tkRmtar"
      },
      "source": [
        "## 2. Retrieve context\n",
        "\n",
        "Now, let's upload the PDF file to Assistant, and run some queries against it to get context snippets."
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "JYN2KRL1YOKO"
      },
      "source": [
        "### Upload the file we downloaded to Pinecone Assistant\n",
        "\n",
        "You can monitor this upload in the Assistant Console here: https://app.pinecone.io/organizations/-/projects/-/assistant/my-cool-context-assistant/files."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 10,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "WPcZsx8Olq3w",
        "outputId": "7aa852fd-79c0-42a4-b5fa-ce492a697dc2"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "file netflix-10k.pdf already uploaded\n"
          ]
        }
      ],
      "source": [
        "file_names = [f.name for f in assistant.list_files()]\n",
        "\n",
        "file_name = \"netflix-10k.pdf\"\n",
        "\n",
        "if file_name not in file_names:\n",
        "\n",
        "  response = assistant.upload_file(\n",
        "      file_path=file_name,\n",
        "      timeout=None,\n",
        "      metadata={ \"published\": \"2016-01-28\", \"document_type\": \"10k\" },\n",
        "  )\n",
        "  print(response)\n",
        "else:\n",
        "  print(f\"file {file_name} already uploaded\")"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 11,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "y5jEHwrQKump",
        "outputId": "743798fa-6956-41d8-8cf2-2f21447e8dc1"
      },
      "outputs": [
        {
          "data": {
            "text/plain": [
              "[FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url=None, error_message=None, size=578489.0)]"
            ]
          },
          "execution_count": 11,
          "metadata": {},
          "output_type": "execute_result"
        }
      ],
      "source": [
        "# We can also list the files on Assistant to validate the file exists\n",
        "assistant.list_files()"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "agW-xn7pYlIk"
      },
      "source": [
        "### Run a context query"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 12,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "z9I3Zi9CXy-p",
        "outputId": "cd811930-7aa1-4a16-97b8-1fbcfe58bd98"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "[Snippet(type='text', content='ures to be designed under our supervision, to\\r\\nensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those\\r\\nentities, particularly during the period in which this report is being prepared;\\r\\nb) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our\\r\\nsupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for\\r\\nexternal purposes in accordance with generally accepted accounting principles;\\r\\nc) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the\\r\\neffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and\\r\\nd) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent\\r\\nfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to\\r\\nmaterially affect, the registrant’s internal control over financial reporting; and\\r\\n5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the\\r\\nregistrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):\\r\\na) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably\\r\\nlikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and\\r\\nb) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control\\r\\nover financial reporting.\\r\\nDated: January 28, 2016 By: / S / R EED H ASTINGS \\r\\nReed Hastings\\r\\nChief Executive OfficerEXHIBIT 31.2\\r\\nCERTIFICATION OF CHIEF FINANCIAL OFFICER\\r\\nPURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002\\r\\nI, David Wells, certify that:\\r\\n1. I have reviewed this Annual Report on Form 10-K of Netflix, Inc.;\\r\\n2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the\\r\\nstatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;\\r\\n3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the\\r\\nfinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;\\r\\n4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange\\r\\nAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the\\r\\nregistrant and have:\\r\\na) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to\\r\\nensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those\\r\\nentities, particularly during the period in which this report is being prepared;\\r\\nb) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our\\r\\nsupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for\\r\\nexternal purposes in accordance with generally accepted accounting principles;\\r\\nc) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the\\r\\neffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and\\r\\nd) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent\\r\\nfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to\\r\\nmaterially affect, the registrant’s internal control over financial reporting; and\\r\\n5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the\\r\\nregistrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):\\r\\na) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably\\r\\nlikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and\\r\\nb) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control\\r\\nover financial reporting.\\r\\nDated: January 28, 2016 By: / S / D AVID W ELLS \\r\\nDavid Wells\\r\\nChief Financial OfficerEXHIBIT 32.1\\r\\nCERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER\\r\\nPURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002\\r\\nI, Reed Hastings, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Annual Report\\r\\non Form 10-K of Netflix, Inc. for the year ended December 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act\\r\\nof 1934 and that information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Netflix, Inc.\\r\\nDated: January 28, 2016 By: / S / R EED H ASTINGS \\r\\nReed Hastings\\r\\nChief Executive Officer\\r\\nI, David Wells, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Annual Report\\r\\non Form 10-K of Netflix, Inc. for the year ended December 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act\\r\\nof 1934 and that information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Netflix, Inc.\\r\\nDated: January 28, 2016 By: / S / D AVID W ELLS \\r\\nDavid Wells\\r\\nChief Financial Officer', score=0.90330297, reference=PdfReference(type='pdf', pages=[70, 71, 72], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='Table of Contents\\r\\nThe following tables represent segment information for the year ended December 31, 2013:\\r\\nAs of/Year ended December 31, 2013\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nTotal memberships at end of period (1) 33,420 10,930 6,930 —\\r\\nRevenues $ 2,751,375 $ 712,390 $ 910,797 $ 4,374,562\\r\\nCost of revenues 1,863,376 782,304 471,523 3,117,203\\r\\nMarketing 265,232 204,418 292 469,942\\r\\nContribution profit (loss) $ 622,767 $ (274,332) $ 438,982 $ 787,417\\r\\nOther operating expenses 559,070\\r\\nOperating income 228,347\\r\\nOther income (expense) (57,273)\\r\\nProvision for income taxes 58,671\\r\\nNet income $ 112,403\\r\\nAs of/Year ended December 31, 2013\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nAmortization of content assets 1,420,076 701,905 71,325 2,193,306\\r\\n(1) A membership (also referred to as a subscription or a member) is defined as the right to receive the Netflix service following sign-up and a method of\\r\\npayment being provided. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by our internal\\r\\nsystems, which utilize industry standard geo-location technology. We offer free-trial memberships to new and certain rejoining members. Total members\\r\\ninclude those who are on a free-trial as long as a method of payment has been provided. A membership is canceled and ceases to be reflected in the above\\r\\nmetrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the prepaid membership period, while involuntary\\r\\ncancellation of the service, as a result of a failed method of payment, becomes effective immediately except in limited circumstances where a short grace\\r\\nperiod is offered to ensure the streaming service is not interrupted for members who are impacted by payment processing delays by our banks or integrated\\r\\npayment partners. The number of members in a grace period at any given point is not material.\\r\\n60Table of Contents\\r\\n13. Selected Quarterly Financial Data (Unaudited)\\r\\nDecember 31 September 30 June 30 March 31\\r\\n(in thousands, except for per share data)\\r\\n2015\\r\\nTotal revenues $ 1,823,333 $ 1,738,355 $ 1,644,694 $ 1,573,129\\r\\nGross profit 573,968 564,397 522,942 526,728\\r\\nNet income 43,178 29,432 26,335 23,696\\r\\nEarnings per share:\\r\\nBasic $ 0.10 $ 0.07 $ 0.06 $ 0.06\\r\\nDiluted 0.10 0.07 0.06 0.05\\r\\n2014\\r\\nTotal revenues $ 1,484,728 $ 1,409,432 $ 1,340,407 $ 1,270,089\\r\\nGross profit 470,396 455,038 425,559 400,903\\r\\nNet income 83,371 59,295 71,018 53,115\\r\\nEarnings per share:\\r\\nBasic $ 0.20 $ 0.14 $ 0.17 $ 0.13\\r\\nDiluted 0.19 0.14 0.16 0.12\\r\\n61Table of Contents\\r\\nSIGNATURES\\r\\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its\\r\\nbehalf by the undersigned, thereunto duly authorized.\\r\\nNetflix, Inc.\\r\\nDated: January 28, 2016 By: / S / R EED H ASTINGS\\r\\n Reed Hastings\\r\\nChief Executive Officer\\r\\n(principal executive officer)\\r\\nDated: January 28, 2016 By: / S / D AVID W ELLS\\r\\n David Wells\\r\\nChief Financial Officer\\r\\n(principal financial and accounting officer)\\r\\n62Table of Contents\\r\\nPOWER OF ATTORNEY\\r\\nKNOWN ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Reed Hastings and David\\r\\nWells, and each of them, as his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place, and\\r\\nstead, in any and all capacities, to sign any and all amendments to this Report, and to file the same, with all exhibits thereto, and other documents in connection\\r\\ntherewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and\\r\\nperform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in\\r\\nperson, hereby ratifying and confirming that all said attorneys-in-fact and agents, or any of them or their or his substitute or substituted, may lawfully do or cause\\r\\nto be done by virtue thereof.\\r\\nPursuant to the requirements of the Securities and Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons\\r\\non behalf of the registrant and in the capacities and on the dates indicated.\\r\\nSignature Title Date\\r\\n/ S / R EED H ASTINGS President, Chief Executive Officer and Director (principal\\r\\nReed Hastings executive officer) January 28, 2016\\r\\n/ S / D AVID W ELLS Chief Financial Officer (principal financial and accounting\\r\\nDavid Wells officer) January 28, 2016\\r\\n/ S / R ICHARD B ARTON \\r\\nRichard Barton Director January 28, 2016\\r\\n/ S / T IMOTHY M. H ALEY \\r\\nTimothy M. Haley Director January 28, 2016\\r\\n/ S / J AY C. H OAG \\r\\nJay C. Hoag Director January 28, 2016\\r\\n/ S / A NN M ATHER \\r\\nAnn Mather Director January 28, 2016\\r\\n/ S / A. G EORGE B ATTLE \\r\\nA. George Battle Director January 28, 2016\\r\\n/ S / L ESLIE J. K ILGORE \\r\\nLeslie J. Kilgore Director January 28, 2016\\r\\n/S/ BRAD SMITH\\r\\nBrad Smith Director January 28, 2016\\r\\n/S/ ANNE SWEENEY \\r\\nAnne Sweeney Director January 28, 2016\\r\\n63Table of Contents\\r\\nEXHIBIT INDEX\\r\\nExhibit\\r\\nNumber Exhibit Description\\r\\nIncorporated by Reference Filed\\r\\nForm File No. Exhibit Filing Date Herewith\\r\\n3.1 Restated Certificate of Incorporation 10-Q 001-35727 3.1 July 17,2015\\r\\n3.2 Amended and Restated Bylaws 8-K 000-49802 3.1 March 20, 2009\\r\\n3.3 Certificate of Amendment to the Amended and Restated\\r\\nCertificate of Incorporation\\r\\n10-Q 000-49802 3.3 August 2, 2004\\r\\n4.1 Form of Common Stock Certificate S-1/A 333-83878 4.1 April 16, 2002\\r\\n4.2 Indenture, dated as of February 1, 2013, by and between the\\r\\nCompany and Wells Fargo Bank, National Association, as\\r\\nTrustee.\\r\\n8-K 001-35727 4.1 February 1, 2013\\r\\n4.3 Indenture, dated as of February 19, 2014, by and between the\\r\\nCompany and Wells Fargo Bank, National Association, as\\r\\nTrustee.\\r\\n8-K 001-35727 4.1 February 19, 2014\\r\\n4.4 Indenture, dated as of February 5, 2015, by and between the\\r\\nCompany and Wells Fargo Bank, National Association, as\\r\\nTrustee.\\r\\n8-K 001-35727 4.1 February 5, 2015\\r\\n4.5 Indenture, dated as of February 5, 2015, by and between the\\r\\nCompany and Wells Fargo Bank, National Association, as\\r\\nTrustee.\\r\\n8-K 001-35727 4.2 February 5, 2015\\r\\n10.1† Form of Indemnification Agreement entered into by the\\r\\nregistrant with each of its executive officers and directors\\r\\nS-1/A 333-83878 10.1 March 20, 2002\\r\\n10.2† Amended and Restated 2002 Stock Plan Def 14A 000-49802 A March 31, 2006\\r\\n10.3† 2011 Stock Plan Def 14A 000-49802 A April 20, 2011\\r\\n10.4† Amended and Restated Executive Severance and Retention\\r\\nIncentive Plan\\r\\n10-K 000-49802 10.7 February 1, 2013\\r\\n10.5†', score=0.8793233, reference=PdfReference(type='pdf', pages=[62, 63, 64, 65, 66], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content=\"n the\\r\\nCompany and Wells Fargo Bank, National Association, as\\r\\nTrustee.\\r\\n8-K 001-35727 4.2 February 5, 2015\\r\\n10.1† Form of Indemnification Agreement entered into by the\\r\\nregistrant with each of its executive officers and directors\\r\\nS-1/A 333-83878 10.1 March 20, 2002\\r\\n10.2† Amended and Restated 2002 Stock Plan Def 14A 000-49802 A March 31, 2006\\r\\n10.3† 2011 Stock Plan Def 14A 000-49802 A April 20, 2011\\r\\n10.4† Amended and Restated Executive Severance and Retention\\r\\nIncentive Plan\\r\\n10-K 000-49802 10.7 February 1, 2013\\r\\n10.5† Registration Rights Agreement, dated as of February 19,\\r\\n2014, by and among the Company and Morgan Stanley &\\r\\nCo. LLC, as representative of the Initial Purchasers listed in\\r\\nSchedule 1 thereto\\r\\n8-K 001-35727 10.1 February 19, 2014\\r\\n10.6† Performance Bonus Plan Def 14A 001-35727 A April 28, 2014\\r\\n10.7 Registration Rights Agreement, dated as of February 5, 2015,\\r\\nby and among the Company and Morgan Stanley & Co.\\r\\nLLC, as representative of the Initial Purchasers listed in\\r\\nSchedule 1 thereto\\r\\n8-K 001-35727 10.1 February 5, 2015\\r\\n10.8 Registration Rights Agreement, dated as of February 5, 2015,\\r\\nby and among the Company and Morgan Stanley & Co.\\r\\nLLC, as representative of the Initial Purchasers listed in\\r\\nSchedule 1 thereto\\r\\n8-K 001-35727 10.2 February 5, 2015\\r\\n10.9 Purchase Agreement between Morgan Stanley & Co. LLC,\\r\\nas representative of several initial purchasers, and Netflix,\\r\\nInc. dated February 2, 2015\\r\\n10-Q 001-35727 10.9 April 17, 2015\\r\\n21.1 List of Significant Subsidiaries X\\r\\n23.1 Consent of Ernst & Young LLP X\\r\\n24 Power of Attorney (see signature page)\\r\\n31.1 Certification of Chief Executive Officer Pursuant to Section\\r\\n302 of the Sarbanes-Oxley Act of 2002 X\\r\\n31.2 Certification of Chief Financial Officer Pursuant to Section\\r\\n302 of the Sarbanes-Oxley Act of 2002 X\\r\\n64Table of Contents\\r\\nExhibit\\r\\nNumber Exhibit Description\\r\\nIncorporated by Reference Filed\\r\\nForm File No. Exhibit Filing Date Herewith\\r\\n32.1* Certifications of Chief Executive Officer and Chief Financial\\r\\nOfficer Pursuant to Section 906 of the Sarbanes-Oxley Act of\\r\\n2002 X\\r\\n101 The following financial information from Netflix, Inc.’s\\r\\nAnnual Report on Form 10-K for the year ended December\\r\\n31, 2015 filed with the SEC on January 28, 2016, formatted\\r\\nin XBRL includes: (i) Consolidated Statements of Operations\\r\\nfor the Years Ended December 31, 2015, 2014 and 2013, (ii)\\r\\nConsolidated Statements of Comprehensive Income for the\\r\\nYears Ended December 31, 2015, 2014 and 2013, (iii)\\r\\nConsolidated Statements of Cash Flows for the Years Ended\\r\\nDecember 31, 2015, 2014 and 2013, (iv) Consolidated\\r\\nBalance Sheets as of December 31, 2015 and 2014, (v)\\r\\nConsolidated Statements of Stockholders' Equity for the\\r\\nYears Ended December 31, 2015, 2014 and 2013 and (vi) the\\r\\nNotes to Consolidated Financial Statements. X\\r\\n* These certifications are not deemed filed by the SEC and are not to be incorporated by reference in any filing we make under the Securities Act of 1933 or the\\r\\nSecurities Exchange Act of 1934, irrespective of any general incorporation language in any filings.\\r\\n† Indicates a management contract or compensatory plan\\r\\n65Exhibit 21.1\\r\\nNETFLIX, INC.\\r\\nLIST OF SIGNIFICANT SUBSIDIARIES*\\r\\nLegal Name Jurisdiction Percent Owned\\r\\nNetflix Entretenimento Brasil LTDA Brazil 100%\\r\\nNetflix International B.V. The Netherlands 100%\\r\\nNetflix K.K. Japan 100%\\r\\nNetflix Services France SAS France 100%\\r\\nNetflix Services Germany GmbH Germany 100%\\r\\nNetflix Services UK Limited United Kingdom 100%\\r\\nNetflix Streaming Services International B.V. The Netherlands 100%\\r\\nNetflix Streaming Services, Inc. United States 100%\\r\\nNetflix Studios, LLC United States 100%\\r\\nNetflixCS, Inc. United States 100%\\r\\n* Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other subsidiaries of Netflix Inc. are omitted\\r\\nbecause, considered in the aggregate, they would not constitute a significant subsidiary as of the end of the\\r\\nyear covered by this report.Exhibit 23.1\\r\\nConsent of Independent Registered Public Accounting Firm\\r\\nWe consent to the incorporation by reference in the following Registration Statements:\\r\\n(1) Registration Statement (Form S-8 No. 333-89024) pertaining to Netflix.com, Inc. 1997 Stock Plan, as amended, Netflix, Inc. 2002 Stock Plan, Netflix,\\r\\nInc. 2002 Employee Stock Purchase Plan, and Netflix.com, Inc. Stand-Alone Stock Option Agreements,\\r\\n(2) Registration Statement (Form S-8 No. 333-104250) pertaining to Netflix, Inc. 2002 Stock Plan and Netflix, Inc. 2002 Employee Stock Purchase Plan,\\r\\n(3) Registration Statement (Form S-8 No. 333-113198) pertaining to Netflix, Inc. 2002 Stock Plan and Netflix, Inc. 2002 Employee Stock Purchase Plan\\r\\n(4) Registration Statement (Form S-8 No. 333-123501) pertaining to Netflix, Inc. 2002 Stock Plan and Netflix, Inc. 2002 Employee Stock Purchase Plan,\\r\\n(5) Registration Statement (Form S-8 No. 333-136403) pertaining to Netflix, Inc. Amended and Restated 2002 Stock Plan and Netflix, Inc. 2002 Employee\\r\\nStock Purchase Plan\\r\\n(6) Registration Statement (Form S-8 No. 333-145147) pertaining to Netflix, Inc. 2002 Employee Stock Purchase Plan,\\r\\n(7) Registration Statement (Form S-8 No. 333-160946) pertaining to Netflix, Inc. 2002 Employee Stock Purchase Plan,\\r\\n(8) Registration Statement (Form S-8 No. 333-177561) pertaining to Netflix, Inc. 2011 Stock Plan,\\r\\nof our reports dated January 28, 2016, with respect to the consolidated financial statements of Netflix, Inc. and the effectiveness of internal control over financial\\r\\nreporting of Netflix, Inc. included in this Annual Report on Form 10-K of Netflix, Inc. for the year ended December 31, 2015.\\r\\nSan Jose, California\\r\\nJanuary 28, 2016\\r\\n/s/ Ernst & Young LLPEXHIBIT 31.1\\r\\nCERTIFICATION OF CHIEF EXECUTIVE OFFICER\\r\\nPURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002\\r\\nI, Reed Hastings, certify that:\\r\\n1. I have reviewed this Annual Report on Form 10-K of Net\", score=0.5148644, reference=PdfReference(type='pdf', pages=[66, 67, 68, 69, 70], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='han net income for the year ended December 31, 2014 primarily due to $534.2 million of content cash payments\\r\\nover expense partially offset by $115.2 million of non-cash stock-based compensation expense and $25.5 million of favorable other working capital differences.\\r\\nYear ended December 31, 2014 as compared to the year ended December 31, 2013\\r\\nCash provided by operating activities decreased $81.3 million, primarily due to increased payments for content other than DVD assets of $835.1 million or\\r\\n32%, as well as increased payments associated with higher operating expenses. The increased use of cash was partially offset by a $1,130.1 million or 26%\\r\\nincrease in revenues.\\r\\nCash used in investing activities decreased $213.1 million, primarily due to a decrease of $242.2 million in the purchases of short-term investments, net of\\r\\nproceeds from sales and maturities. This decrease was offset by an increase of $15.6 million purchases of property and equipment.\\r\\nCash provided by financing activities increased $65.4 million primarily due to the $392.9 million net proceeds from the issuance of the 5.750% Notes in the\\r\\nyear ended December 31, 2014 as compared to the $490.6 million net proceeds from the issuance of the 5.375% Notes less the $219.4 million redemption of our\\r\\n8.50% Notes in the year ended December 31, 2013. This increase was partially offset by a decrease of $56.3 million from the issuance of common stock, including\\r\\nthe impact of excess tax benefits.\\r\\nFree cash flow was $128.7 million lower than net income for the year ended December 31, 2013 primarily due to $227.9 million of content cash payments\\r\\nover expense and $45.3 million non-favorable other working capital differences. This was partially offset by $73.1 million non-cash stock-based compensation\\r\\nexpense, $46.3 million in deferred revenue and $25.1 million loss on debt extinguishment, the cash impact of which is a financing activity and therefore not\\r\\nincluded in free cash flow.\\r\\nContractual Obligations\\r\\nFor the purpose of this table, contractual obligations for purchases of goods or services are defined as agreements that are enforceable and legally binding and\\r\\nthat specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing\\r\\nof the transaction. The expected timing of the payment of the obligations discussed below is estimated based on information available to us as of December 31,\\r\\n2015. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for\\r\\nsome obligations. The following table summarizes our contractual obligations at December 31, 2015:\\r\\nPayments due by Period\\r\\nContractual obligations (in thousands): Total\\r\\nLess than\\r\\n1 year 1-3 years 3-5 years\\r\\nMore than\\r\\n5 years\\r\\nStreaming content obligations (1) $ 10,902,231 $ 4,703,172 $ 5,249,147 $ 891,864 $ 58,048\\r\\nDebt (2) 3,425,813 135,375 270,750 270,750 2,748,938\\r\\nLease obligations (3) 529,744 42,545 112,826 104,996 269,377\\r\\nOther purchase obligations (4) 322,793 217,004 105,275 170 344\\r\\nTotal $ 15,180,581 $ 5,098,096 $ 5,737,998 $ 1,267,780 $ 3,076,707\\r\\n(1) As of December 31, 2015, streaming content obligations were comprised of $2.8 billion included in \"Current content liabilities\" and $2.0 billion of \"Non\\x02current content liabilities\" on the Consolidated Balance Sheets and $6.1 billion of obligations that are not reflected on the Consolidated Balance Sheets as\\r\\nthey do not yet meet the criteria for asset recognition.\\r\\nStreaming content obligations increased $1.4 billion from $9.5 billion as of December 31, 2014 to $10.9 billion as of December 31, 2015 primarily due to\\r\\nmulti-year commitments primarily associated with the continued expansion of our exclusive and original programing.\\r\\nStreaming content obligations include amounts related to the acquisition, licensing and production of streaming content. An obligation for the production of\\r\\ncontent includes non-cancelable commitments under creative talent and employment agreements. An obligation for the acquisition and licensing of content\\r\\nis incurred at the time we enter into an agreement\\r\\n26Table of Contents\\r\\nto obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the\\r\\nobligation to license rights for unknown future titles, the ultimate quantity and / or fees for which are not yet determinable as of the reporting date.\\r\\nTraditional film output deals, like the U.S. output deal with Disney, or certain TV series license agreements where the number of seasons to be aired is\\r\\nunknown, are examples of these types of agreements. The contractual obligations table above does not include any estimated obligation for the unknown\\r\\nfuture titles, payment for which could range from less than one year to more than five years. However, these unknown obligations are expected to be\\r\\nsignificant and we believe could include approximately $3 billion to $5 billion over the next three years, with the payments for the vast majority of such\\r\\namounts expected to occur after the next twelve months. The foregoing range is based on considerable management judgments and the actual amounts may\\r\\ndiffer. Once we know the title that we will receive and the license fees, we include the amount in the contractual obligations table above.\\r\\n(2) Long-term debt obligations include our Notes consisting of principal and interest payments. See Note 5 of Item 8, Financial Statements and Supplementary\\r\\nData for further details.\\r\\n(3) Lease obligations include lease financing obligations of $21.1 million related to our current Los Gatos, California headquarters for which we are the deemed\\r\\nowner for accounting purposes, commitments of $428.7 million for our expanded headquarters in Los Gatos, California and our new office space in Los\\r\\nAngeles, California and other commitments of $79.9 million for facilities under non-cancelable operating leases. These leases have expiration dates varying\\r\\nthrough approximately 2028.\\r\\n(4) Other purchase obligations include all other non-cancelable contractual obligations. These contracts are primarily related to streaming delivery, DVD\\r\\ncontent acquisition, and miscellaneous open purchase orders for which we have not received the related services or goods.\\r\\nAs of December 31, 2015, we had gross unrecognized tax benefits of $17.1 million of which $3.6 million was recorded in \"Accrued Expenses\" in the\\r\\nConsolidated Balance Sheets. For the remaining $13.5 million, we are unable to make a reasonably reliable estimate of the timing of payments in individual years\\r\\ndue to uncertainties in the timing of tax audit outcomes, therefore, such amounts are not incl', score=0.49231076, reference=PdfReference(type='pdf', pages=[28, 29], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content=\"ectual property of third parties in merchandising our products and marketing our\\r\\nservice through contractual and other rights. From time to time, third parties allege that we have violated their intellectual property rights. If we are unable to\\r\\nobtain sufficient rights, successfully defend our use, or develop non-infringing technology or otherwise alter our business practices on a timely basis in response to\\r\\nclaims against us for infringement, misappropriation, misuse or other violation of third-party intellectual property rights, our business and competitive position may\\r\\nbe adversely affected. Many companies are devoting significant resources to developing patents that could potentially affect many aspects of our business. There\\r\\nare numerous patents that broadly claim means and methods of conducting business on the Internet. We have not searched patents relative to our technology.\\r\\nDefending ourselves against intellectual property claims, whether they are with or without merit or are determined in our favor, results in costly litigation and\\r\\ndiversion of technical and management personnel. It also may result in our inability to use our current Web site, streaming technology, our recommendation and\\r\\nmerchandising technology or inability to market our service or merchandise our products. As a result of a dispute, we may have to develop non-infringing\\r\\ntechnology, enter into royalty or licensing agreements, adjust our merchandising or marketing activities or take other actions to resolve the claims. These actions, if\\r\\nrequired, may be costly or unavailable on terms acceptable to us.\\r\\nWe are engaged in legal proceedings that could cause us to incur unforeseen expenses and could occupy a significant amount of our management's time\\r\\nand attention.\\r\\nFrom time to time, we are subject to litigation or claims that could negatively affect our business operations and financial position. As we have grown, we\\r\\nhave seen a rise in the number of litigation matters against us. These matters have included patent infringements as well as consumer and securities class actions,\\r\\neach of which are typically expensive to defend. Litigation disputes could cause us to incur unforeseen expenses, could occupy a significant amount of our\\r\\nmanagement's time and attention and could negatively affect our business operations and financial position.\\r\\n9Table of Contents\\r\\nWe may seek additional capital that may result in stockholder dilution or that may have rights senior to those of our common stockholders.\\r\\nFrom time to time, we may seek to obtain additional capital, either through equity, equity-linked or debt securities. The decision to obtain additional capital\\r\\nwill depend on, among other things, our business plans, operating performance and condition of the capital markets. If we raise additional funds through the\\r\\nissuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, and our\\r\\nstockholders may experience dilution.\\r\\nWe have debt outstanding and may incur additional debt in the future, which may adversely affect our financial condition and future financial results.\\r\\nAs of December 31, 2015, we had $2,400 million aggregate principal amount of senior notes outstanding. Risks relating to our long-term indebtedness\\r\\ninclude: • requiring us to dedicate a portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of cash flow to\\r\\nfund working capital, capital expenditures, acquisitions and investments and other general corporate purposes; • limiting our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate; and\\r\\n• limiting our ability to borrow additional funds or to borrow funds at rates or on other terms we find acceptable.\\r\\nIt is possible that we may incur additional indebtedness in the future in the ordinary course of business. If new debt is added to current debt levels, the risks\\r\\ndescribed above could intensify.\\r\\nWe may lose key employees or may be unable to hire qualified employees.\\r\\nWe rely on the continued service of our senior management, including our Chief Executive Officer and co-founder Reed Hastings, members of our executive\\r\\nteam and other key employees and the hiring of new qualified employees. In our industry, there is substantial and continuous competition for highly-skilled\\r\\nbusiness, product development, technical and other personnel. We may not be successful in recruiting new personnel and in retaining and motivating existing\\r\\npersonnel, which may be disruptive to our operations.\\r\\nIf memberships to our Domestic DVD segment decline faster than anticipated, our business could be adversely affected.\\r\\nThe number of memberships to our DVD-by-mail offering is declining, and we anticipate that this decline will continue. We believe, however, that the\\r\\ndomestic DVD business will continue to generate significant contribution profit for our business. The contribution profit generated by our domestic DVD business\\r\\nwill help provide capital resources to fund our growth internationally. To the extent that the rate of decline in our DVD-by-mail business is greater than we\\r\\nanticipate, our business could be adversely affected. We do not anticipate increasing resources to our DVD operations and the technology used in its operations\\r\\nwill not be meaningfully improved. To the extent that we experience service interruptions or other degradations in our DVD-by-mail service, members' satisfaction\\r\\ncould be negatively impacted and we could experience an increase in DVD-by-mail member cancellations, which could adversely impact our business.\\r\\nChanges in U.S. Postal rates or operations could adversely impact our operating results and member satisfaction.\\r\\nWe rely exclusively on the U.S. Postal Service to deliver DVDs from our shipping centers and to return DVDs to us from our members. Increases in postage\\r\\ndelivery rates, including those resulting from changes to policies on the requirements of first class mail such as size, weight or machinability, could adversely\\r\\naffect our Domestic DVD segment's contribution profit. If the U.S. Postal Service were to implement other changes to improve its financial position, such as\\r\\nclosing mail processing facilities or service reductions, such changes could lead to a decrease in customer satisfaction and our Domestic DVD segment's\\r\\ncontribution profit could be adversely affected.\\r\\n10Table of Contents\\r\\nRisks Related to Our Stock Ownership\\r\\nProvisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable.\\r\\nOur charter documents may discourage, delay or prevent a merger or acquisition that a stockholder may consider f\", score=0.47256237, reference=PdfReference(type='pdf', pages=[11, 12, 13], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='d in particular a weakening of foreign currencies relative to the U.S. dollar may negatively affect our revenue and\\r\\ncontribution profit (loss) of our International streaming segment as expressed in U.S. dollars. For the year ended December 31, 2015, we believe our international\\r\\nrevenues would have been approximately $331 million higher had foreign currency exchange rates remained consistent with those for the year ended December 31,\\r\\n2014.\\r\\nWe have also experienced and will continue to experience fluctuations in our net income as a result of gains (losses) on the settlement and the remeasurement\\r\\nof monetary assets and liabilities denominated in currencies that are not the functional currency. In the year ended December 31, 2015, we recognized a $37.3\\r\\nmillion foreign exchange loss which resulted primarily from the remeasurement of significant content liabilities denominated in currencies other than functional\\r\\ncurrencies in our European entities coupled with the strengthening of the U.S. dollar.\\r\\nWe do not use foreign exchange contracts or derivatives to hedge any foreign currency exposures. The volatility of exchange rates depends on many factors\\r\\nthat we cannot forecast with reliable accuracy. Our continued international expansion increases our exposure to exchange rate fluctuations and as a result such\\r\\nfluctuations could have a significant impact on our future results of operations.\\r\\n30Table of Contents\\r\\nItem 8. Financial Statements and Supplementary Data\\r\\nThe consolidated financial statements and accompanying notes listed in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K are included immediately\\r\\nfollowing Part IV hereof and incorporated by reference herein.\\r\\nItem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure\\r\\nNone.\\r\\nItem 9A. Controls and Procedures\\r\\n(a) Evaluation of Disclosure Controls and Procedures\\r\\nOur management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls\\r\\nand procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this\\r\\nAnnual Report on Form 10-K. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and\\r\\nprocedures as of the end of the period covered by this Annual Report on Form 10-K were effective in providing reasonable assurance that information required to\\r\\nbe disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported\\r\\nwithin the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to\\r\\nour management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.\\r\\nOur management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our\\r\\ninternal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute,\\r\\nassurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the\\r\\nbenefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide\\r\\nabsolute assurance that all control issues and instances of fraud, if any, within Netflix have been detected.\\r\\n(b) Management’s Annual Report on Internal Control Over Financial Reporting\\r\\nOur management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) of the\\r\\nSecurities Exchange Act of 1934 as amended (the Exchange Act)). Our management assessed the effectiveness of our internal control over financial reporting as of\\r\\nDecember 31, 2015 . In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway\\r\\nCommission (“COSO”) in Internal Control—Integrated Framework (2013 framework). Based on our assessment under the framework in Internal Control—\\r\\nIntegrated Framework (2013 framework), our management concluded that our internal control over financial reporting was effective as of December 31, 2015 . The effectiveness of our internal control over financial reporting as of December 31, 2015 has been audited by Ernst & Young LLP, an independent registered\\r\\npublic accounting firm, as stated in their report that is included herein.\\r\\n(c) Changes in Internal Control Over Financial Reporting\\r\\nThere was no change in our internal control over financial reporting that occurred during the quarter ended December 31, 2015 that has materially affected,\\r\\nor is reasonably likely to materially affect, our internal control over financial reporting.\\r\\n31Table of Contents\\r\\nReport of Independent Registered Public Accounting Firm\\r\\nThe Board of Directors and Stockholders of Netflix, Inc.\\r\\nWe have audited Netflix, Inc.’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated\\r\\nFramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Netflix, Inc.’s\\r\\nmanagement is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over\\r\\nfinancial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an\\r\\nopinion on the Company’s internal control over financial reporting based on our audit.\\r\\nWe conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we\\r\\nplan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.\\r\\nOur audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating\\r\\nthe design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the\\r\\ncircumstances. We believe that our audit provides a reasonable basis for our opinion.\\r\\nA company’s internal control over financial reporting is a process ', score=0.45420644, reference=PdfReference(type='pdf', pages=[32, 33, 34], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='rnational expansion with Canada in 2010 and have since\\r\\nlaunched our service globally, with the exception of The People\\'s Republic of China and territories where U.S. companies are not allowed to operate. We have also\\r\\nexpanded our streaming content offering to include more exclusive and original programming, including several Emmy, Golden Globe and Academy Award\\r\\nnominated original series and documentaries. Our original programming increasingly includes content that we produce.\\r\\nBUSINESS SEGMENTS\\r\\nThe Company has three reportable segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment derives\\r\\nrevenues from monthly membership fees for services consisting solely of streaming content to our members in the United States. The International streaming\\r\\nsegment derives revenues from monthly membership fees for services consisting solely of streaming content to our members outside the United States. The\\r\\nDomestic DVD segment derives revenues from monthly membership fees for services consisting solely of DVD-by-mail. For additional information regarding our\\r\\nsegments, including information about our financial results by geography, see Note 12 of Item 8, Financial Statements and Supplementary Data . 1Table of Contents\\r\\nCOMPETITION\\r\\nThe market for entertainment video is intensely competitive and subject to rapid change. We compete against other entertainment video providers, such as\\r\\nmultichannel video programming distributors (\"MVPDs\"), Internet-based movie and TV content providers (including those that provide pirated content), video\\r\\ngaming providers and DVD rental outlets and more broadly against other sources of entertainment that our members could choose in their moments of free time.\\r\\nWe also compete against entertainment video providers in obtaining content that our members love, both for licensed streaming content and for original content\\r\\nprojects.\\r\\nWhile consumers may maintain simultaneous relationships with multiple entertainment sources, we strive for consumers to choose us in their moments of\\r\\nfree time. We have often referred to this choice as our objective of \"winning moments of truth.\" In attempting to win these moments of truth with our members, we\\r\\nare continually improving our service, including both our technology and our content, which is increasingly exclusive and curated, and includes our own original\\r\\nprogramming.\\r\\nSEASONALITY\\r\\nOur membership growth exhibits a seasonal pattern that reflects variations when consumers buy Internet-connected screens and when they tend to increase\\r\\ntheir viewing. Historically, the first and fourth quarters (October through March)represent our greatest membership growth across our Domestic and International\\r\\nstreaming segments and the fewest membership losses in our Domestic DVD segment. Our membership growth may be impacted by the release of certain high\\r\\nprofile original content. Internationally, we expect each market to demonstrate more predictable seasonal patterns as our service offering in each market becomes\\r\\nmore established and we have a longer history to assess such patterns.\\r\\nINTELLECTUAL PROPERTY\\r\\nWe regard our trademarks, service marks, copyrights, patents, domain names, trade dress, trade secrets, proprietary technologies and similar intellectual\\r\\nproperty as important to our success. We use a combination of patent, trademark, copyright and trade secret laws and confidentiality agreements to protect our\\r\\nproprietary intellectual property. Our ability to protect and enforce our intellectual property rights is subject to certain risks and from time to time we encounter\\r\\ndisputes over rights and obligations concerning intellectual property. We cannot provide assurance that we will prevail in any intellectual property disputes.\\r\\nEMPLOYEES\\r\\nAs of December 31, 2015, we had approximately 3,700 total employees. Of these employees, approximately 3,500 were full-time, including approximately\\r\\n400 categorized as temporary.\\r\\nOTHER INFORMATION\\r\\nWe were incorporated in Delaware in August 1997 and completed our initial public offering in May 2002. Our principal executive offices are located at 100\\r\\nWinchester Circle, Los Gatos, California 95032, and our telephone number is (408) 540-3700.\\r\\nWe maintain a Web site at www.netflix.com. The contents of our Web site are not incorporated in, or otherwise to be regarded as part of, this Annual Report\\r\\non Form 10-K. In this Annual Report on Form 10-K, “Netflix,” the “Company,” “we,” “us,” “our” and the “registrant” refer to Netflix, Inc. We make available,\\r\\nfree of charge on our Web site, access to our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and\\r\\namendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the \"Exchange Act\"), as\\r\\nsoon as reasonably practicable after we file or furnish them electronically with the Securities and Exchange Commission (\"SEC\").\\r\\nInvestors and others should note that we announce material financial information to our investors using our investor relations Web site ( http://ir.netflix.com\\r\\n), SEC filings, press releases, public conference calls and webcasts. We use these channels as well as social media to communicate with our members and the\\r\\npublic about our company, our services and other issues. It is possible that the information we post on social media could be deemed to be material information.\\r\\nTherefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels listed on our\\r\\ninvestor relations Web site.\\r\\n2Table of Contents\\r\\nItem 1A. Risk Factors\\r\\nIf any of the following risks actually occur, our business, financial condition and results of operations could be harmed. In that case, the trading price of our\\r\\ncommon stock could decline, and you could lose all or part of your investment.\\r\\nRisks Related to Our Business\\r\\nIf our efforts to attract and retain members are not successful, our business will be adversely affected.\\r\\nWe have experienced significant membership growth over the past several years. Our ability to continue to attract members will depend in part on our ability\\r\\nto consistently provide our members with compelling content choices, as well as a quality experience for selecting and viewing TV shows and movies.\\r\\nFurthermore, the relative service levels, content offerings, pricing and related features of competitors to our service may adversely impact our ability to attract and\\r\\nretain memberships. Competitors include other entertainment video providers, such as MVPDs, Internet-based movie and TV content providers (including those\\r\\nthat provide pirated content) and DVD rental outlets. If co', score=0.44898248, reference=PdfReference(type='pdf', pages=[3, 4, 5], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='tock beneficially owned by each executive officer and director of the Registrant and by each person known\\r\\nby the Registrant to beneficially own 10% or more of the outstanding common stock have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate\\r\\nstatus is not necessarily a conclusive determination for any other purpose.\\r\\nAs of January 27, 2016, there were 428,081,221 shares of the registrant’s common stock, par value $0.001, outstanding.\\r\\nDOCUMENTS INCORPORATED BY REFERENCE\\r\\nParts of the registrant’s Proxy Statement for Registrant’s 2016 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.Table of Contents\\r\\nNETFLIX, INC.\\r\\nTABLE OF CONTENTS\\r\\nPage\\r\\nPART I\\r\\nItem 1. Business 1\\r\\nItem 1A. Risk Factors 3\\r\\nItem 1B. Unresolved Staff Comments 11\\r\\nItem 2. Properties 12\\r\\nItem 3. Legal Proceedings 12\\r\\nItem 4. Mine Safety Disclosures 12\\r\\nPART II\\r\\nItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 13\\r\\nItem 6. Selected Financial Data 15\\r\\nItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 17\\r\\nItem 7A. Quantitative and Qualitative Disclosures About Market Risk 29\\r\\nItem 8. Financial Statements and Supplementary Data 31\\r\\nItem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 31\\r\\nItem 9A. Controls and Procedures 31\\r\\nItem 9B. Other Information 33\\r\\nPART III\\r\\nItem 10. Directors, Executive Officers and Corporate Governance 34\\r\\nItem 11. Executive Compensation 34\\r\\nItem 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 34\\r\\nItem 13. Certain Relationships and Related Transactions, and Director Independence 34\\r\\nItem 14. Principal Accounting Fees and Services 34\\r\\nPART IV\\r\\nItem 15. Exhibits, Financial Statement Schedules 35Table of Contents\\r\\nPART I\\r\\nForward-Looking Statements\\r\\nThis Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. These forward-looking\\r\\nstatements include, but are not limited to, statements regarding: our core strategy; the growth of Internet delivery of content; the decline in our DVD memberships\\r\\nand the resources allocated to our DVD segment; contribution margins; contribution profits (losses); liquidity; free cash flows; revenues; net income; operating\\r\\ncash flows; stock price volatility; pricing changes; the impact of, and the Company’s response to, new accounting standards; action by competitors; risk of\\r\\nmaterial impairment of current investment portfolio; reinvestment of earnings in foreign subsidiaries; membership growth rates; timing of facilities construction;\\r\\nnature of our content agreements; member viewing habits; payment of future dividends; obtaining additional capital; our content and marketing investments,\\r\\nincluding investments in original programming; significance and timing of contractual obligations; realization of deferred tax assets; seasonality; method of\\r\\ncontent delivery; and international expansion. These forward-looking statements are subject to risks and uncertainties that could cause actual results and events to\\r\\ndiffer. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking\\r\\nstatements is included throughout this filing and particularly in Item 1A: \"Risk Factors\" section set forth in this Annual Report on Form 10-K. All forward-looking\\r\\nstatements included in this document are based on information available to us on the date hereof, and we assume no obligation to revise or publicly release any\\r\\nrevision to any such forward-looking statement, except as may otherwise be required by law.\\r\\nItem 1. Business\\r\\nABOUT US\\r\\nNetflix, Inc. (“Netflix”, “the Company”, “we”, or “us”) is the world’s leading Internet television network with over 75 million streaming members in over\\r\\n190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Our members can\\r\\nwatch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials\\r\\nor commitments. Additionally, in the United States (\"U.S.\"), our members can receive DVDs delivered quickly to their homes.\\r\\nWe are a pioneer in the Internet delivery of TV shows and movies, launching our streaming service in 2007. Since this launch, we have developed an\\r\\necosystem for Internet-connected screens and have added increasing amounts of content that enable consumers to enjoy TV shows and movies directly on their\\r\\nInternet-connected screens. As a result of these efforts, we have experienced growing consumer acceptance of, and interest in, the delivery of TV shows and\\r\\nmovies directly over the Internet.\\r\\nOur core strategy is to grow our streaming membership business globally within the parameters of our consolidated net income and operating segment\\r\\ncontribution profit (loss) targets. We are continuously improving our members\\' experience by expanding our streaming content with a focus on a programming mix\\r\\nof content that delights our members. In addition, we are perpetually enhancing our user interface and extending our streaming service to more Internet-connected\\r\\nscreens. We continue to grow our streaming service both domestically and internationally. We began our international expansion with Canada in 2010 and have since\\r\\nlaunched our service globally, with the exception of The People\\'s Republic of China and territories where U.S. companies are not allowed to operate. We have also\\r\\nexpanded our streaming content offering to include more exclusive and original programming, including several Emmy, Golden Globe and Academy Award\\r\\nnominated original series and documentaries. Our original programming increasingly includes content that we produce.\\r\\nBUSINESS SEGMENTS\\r\\nThe Company has three reportable segments: Domestic ', score=0.4098117, reference=PdfReference(type='pdf', pages=[1, 2, 3], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='Table of Contents\\r\\nOther Data:\\r\\nAs of / Year Ended December 31,\\r\\n2015 2014 2013 2012 2011\\r\\n(in thousands)\\r\\nNet global streaming membership additions during period (1) 17,371 13,041 11,083 9,738 —\\r\\nGlobal streaming memberships (1) 74,762 57,391 44,350 33,267 23,529\\r\\nPrior to July 2011, in the U.S., our streaming and DVD-by-mail operations were combined and members could receive both streaming content and DVDs under a\\r\\nsingle “hybrid” plan. In July 2011, we separated the combined plans, making it necessary for members who wish to receive both DVDs-by-mail and streaming\\r\\ncontent to have two separate membership plans. Prior to these changes to our pricing and plan structure in 2011, we did not separately track streaming\\r\\nmemberships.\\r\\n(1) A membership (also referred to as a subscription or a member) is defined as the right to receive the Netflix service following sign-up and a method of\\r\\npayment being provided. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by our internal\\r\\nsystems, which utilize industry standard geo-location technology. We offer free-trial memberships to new and certain rejoining members. Total members\\r\\ninclude those who are on a free-trial as long as a method of payment has been provided. A membership is canceled and ceases to be reflected in the above\\r\\nmetrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the prepaid membership period, while involuntary\\r\\ncancellation of the service, as a result of a failed method of payment, becomes effective immediately except in limited circumstances where a short grace\\r\\nperiod is offered to ensure the streaming service is not interrupted for members who are impacted by payment processing delays by our banks or integrated\\r\\npayment partners. The number of members in a grace period at any given point is not material.\\r\\n16Table of Contents\\r\\nItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations\\r\\nOverview and Results of Operations\\r\\nThe following represents our consolidated performance highlights:\\r\\nAs of/ Year Ended December 31, Change\\r\\n2015 2014 2013 2015 vs. 2014 2014 vs. 2013\\r\\n(in thousands, except revenue per membership and percentages)\\r\\nGlobal streaming memberships 74,762 57,391 44,350 30 % 29%\\r\\nGlobal streaming average monthly revenue per paying membership $ 8.15 $ 8.20 $ 8.03 (1)% 2%\\r\\nRevenues $ 6,779,511 $ 5,504,656 $ 4,374,562 23 % 26%\\r\\nOperating income $ 305,826 $ 402,648 $ 228,347 (24)% 76%\\r\\nNet income $ 122,641 $ 266,799 $ 112,403 (54)% 137%\\r\\nConsolidated revenues for 2015 and 2014 increased as compared to prior years due to growth in global streaming average paying memberships, the majority\\r\\nof which was growth in our international memberships reflecting our expansion and focus on Netflix as a global Internet TV network. For the year ended\\r\\nDecember 31, 2015, the impact from membership growth was slightly offset by a decrease in average monthly revenue per paying streaming membership resulting\\r\\nfrom unfavorable foreign currency fluctuations impacting our International streaming segment. This was partially offset by increases resulting from price changes\\r\\nand plan mix. The decrease in operating income for the year ended December 31, 2015 as compared to the year ended December 31, 2014 is due primarily to\\r\\nincreased marketing and headcount costs to support our international expansion in addition to increased content expenses as we continue to acquire, license and\\r\\nproduce content, including more Netflix originals. Net income is further impacted by the increase in interest expense associated with our debt issuance in the first\\r\\nquarter of 2015 as well as to an increase in losses on foreign currency denominated transactions.\\r\\nWe offer three types of streaming membership plans. In the U.S. our basic plan is priced at $7.99 per month and includes access to standard definition quality\\r\\nstreaming on a single screen at a time. Our most popular streaming plan is priced at $9.99 per month and includes access to high definition quality streaming on\\r\\ntwo screens concurrently. Our premium plan is priced at $11.99 per month and includes access to high definition and ultra-high definition quality content on four\\r\\nscreens concurrently. Internationally, the membership plans are structured similarly to the U.S. and range in price from the U.S. dollar equivalent of approximately\\r\\n$5.00 to $18.00 per month.\\r\\nWe expect that from time to time the prices of our membership plans in each country may change. For instance, in the second half of 2015, we increased the\\r\\nprice of our two-screen high definition plan in the U.S. and several European countries. In May 2014, in the U.S., we increased the price of our high definition plan\\r\\nfrom $7.99 per month to $8.99 per month with existing memberships grandfathered for a two year period. In October 2015, in the U.S., we increased the price of\\r\\nthis same high definition plan from $8.99 per month to $9.99 per month with existing memberships grandfathered for a one year period. In 2016, the grandfathered\\r\\npricing period will expire for a substantial number of U.S. memberships and the members will have the option of electing the basic streaming plan at $7.99 or\\r\\ncontinuing on the high definition plan at the higher price of $9.99.\\r\\nThe following represents the key elements to our segment results of operations: • We define contribution profit (loss) as revenues less cost of revenues and marketing expenses incurred by the segment. We believe this is an important\\r\\nmeasure of our operating segment performance as it represents each segment\\'s performance before global corporate costs. • For the Domestic and International streaming segments, content expenses, which include the amortization of the streaming content assets and other\\r\\nexpenses associated with the licensing and acquisition of streaming content, represent the vast majority of cost of revenues. Streaming content rights were\\r\\ngenerally obtained for our current geographic regions. As we expanded internationally, we obtained additional rights for the new geographies. With our\\r\\nglobal expansion, we now aspire to obtain global rights for our new content. We allocate this content between the Domestic and International segments\\r\\nbased on estimated fair market value. Other cost of revenues such as streaming delivery expenses, customer service and payment processing fees,\\r\\nincluding those we pay to our integrated payment partners, tend to be lower as a percentage of total cost of revenues as compared to content licensing\\r\\nexpenses. We have built our\\r\\n17Table of Contents\\r\\nown global content delivery network (\"Open Connect\") to help us efficiently stream a high volume of content to our members over the Internet.\\r\\nS', score=0.40867847, reference=PdfReference(type='pdf', pages=[18, 19, 20], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='eporting of Netflix, Inc. included in this Annual Report on Form 10-K of Netflix, Inc. for the year ended December 31, 2015.\\r\\nSan Jose, California\\r\\nJanuary 28, 2016\\r\\n/s/ Ernst & Young LLPEXHIBIT 31.1\\r\\nCERTIFICATION OF CHIEF EXECUTIVE OFFICER\\r\\nPURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002\\r\\nI, Reed Hastings, certify that:\\r\\n1. I have reviewed this Annual Report on Form 10-K of Netflix, Inc.;\\r\\n2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the\\r\\nstatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;\\r\\n3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the\\r\\nfinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;\\r\\n4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange\\r\\nAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the\\r\\nregistrant and have:\\r\\na) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to\\r\\nensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those\\r\\nentities, particularly during the period in which this report is being prepared;\\r\\nb) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our\\r\\nsupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for\\r\\nexternal purposes in accordance with generally accepted accounting principles;\\r\\nc) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the\\r\\neffectiveness of the disclosure controls ', score=0.39501804, reference=PdfReference(type='pdf', pages=[69, 70], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, 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common shares outstanding:\\r\\nBasic 425,889 420,544 407,385\\r\\nDiluted 436,456 431,894 425,327\\r\\nSee accompanying notes to consolidated financial statements.\\r\\n38Table of Contents\\r\\nNETFLIX, INC.\\r\\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\\r\\n(in thousands)\\r\\nYear ended December 31,\\r\\n2015 2014 2013\\r\\nNet income $ 122,641 $ 266,799 $ 112,403\\r\\nOther comprehensive income (loss):\\r\\nForeign currency translation adjustments (37,887) (7,768) 1,772\\r\\nChange in unrealized gains (losses) on available-for-sale securities, net of tax of $(598), $(156), and\\r\\n$(697), respectively\\r\\n(975) (253) (1,116)\\r\\nTotal other comprehensive income (loss) (38,862) (8,021) 656\\r\\nComprehensive income $ 83,779 $ 258,778 $ 113,059\\r\\nSee accompanying notes to consolidated financial statements.\\r\\n39Table of Contents\\r\\nNETFLIX, INC.\\r\\nCONSOLIDATED STATEMENTS OF CASH FLOWS\\r\\n(in thousands)\\r\\n Year Ended December 31,\\r\\n2015 2014 2013\\r\\nCash flows from operating activities:\\r\\nNet income $ 122,641 $ 266,799 $ 112,403\\r\\nAdjustments to reconcile net income to net cash (used in) provided by operating activities:\\r\\nAdditions to streaming content assets (5,771,652) (3,773,019) (3,030,701)\\r\\nChange in streaming content liabilities 1,162,413 593,125 673,785\\r\\nAmortization of streaming content assets 3,405,382 2,656,279 2,121,981\\r\\nAmortization of DVD content assets 79,380 71,491 71,325\\r\\nDepreciation and amortization of property, equipment and intangibles 62,283 54,028 48,374\\r\\nStock-based compensation expense 124,725 115,239 73,100\\r\\nExcess tax benefits from stock-based compensation (80,471) (89,341) (81,663)\\r\\nOther non-cash items 31,628 15,282 5,332\\r\\nLoss on extinguishment of debt — — 25,129\\r\\nDeferred taxes (58,655) (30,063) (22,044)\\r\\nChanges in operating assets and liabilities:\\r\\nOther current assets 18,693 (9,198) 43,177\\r\\nAccounts payable 51,615 83,812 18,374\\r\\nAccrued expenses 48,810 55,636 1,941\\r\\nDeferred revenue 72,135 58,819 46,295\\r\\nOther non-current assets and liabilities (18,366) (52,406) (8,977)\\r\\nNet cash (used in) provided by operating activities (749,439) 16,483 97,831\\r\\nCash flows from investing activities:\\r\\nAcquisition of DVD content assets (77,958) (74,790) (65,927)\\r\\nPurchases of property and equipment (91,248) (69,726) (54,143)\\r\\nOther assets (1,912) 1,334 5,939\\r\\nPurchases of short-term investments (371,915) (426,934) (550,264)\\r\\nProceeds from sale of short-term investments 259,079 385,300 347,502\\r\\nProceeds from maturities of short-term investments 104,762 141,950 60,925\\r\\nNet cash used in investing activities (179,192) (42,866) (255,968)\\r\\nCash flows from financing activities:\\r\\nProceeds from issuance of common stock 77,980 60,544 124,557\\r\\nProceeds from issuance of debt 1,500,000 400,000 500,000\\r\\nIssuance costs (17,629) (7,080) (9,414)\\r\\nRedemption of debt — — (219,362)\\r\\nExcess tax benefits from stock-based compensation 80,471 89,341 81,663\\r\\nPrincipal payments of lease financing obligations (545) (1,093) (1,180)\\r\\nNet cash provided by financing activities 1,640,277 541,712 476,264\\r\\nEffect of exchange rate changes on cash and cash equivalents (15,924) (6,686) (3,453)\\r\\nNet increase in cash and cash equivalents 695,722 508,643 314,674\\r\\nCash and cash equivalents, beginning of year 1,113,608 604,965 290,291\\r\\nCash and cash equivalents, end of year $ 1,809,330 $ 1,113,608 $ 604,965\\r\\nSupplemental disclosure:\\r\\nIncome taxes paid $ 27,658 $ 50,573 $ 7,465\\r\\nInterest paid 111,761 41,085 19,114\\r\\nInvesting activities included in liabilities 18,824 23,802 11,508\\r\\nSee accompanying notes to consolidated financial statements.\\r\\n40Table of Contents\\r\\nNETFLIX, INC.\\r\\nCONSOLIDATED BALANCE SHEETS\\r\\n(in thousands, except share and per share data)\\r\\nAs of December 31, 2015 2014\\r\\nAssets\\r\\nCurrent assets:\\r\\nCash and cash equivalents $ 1,809,330 $ 1,113,608\\r\\nShort-term investments 501,385 494,888\\r\\nCurrent content assets, net 2,905,998 2,166,134\\r\\nOther current assets 215,127 152,423\\r\\nTotal current assets 5,431,840 3,927,053\\r\\nNon-current content assets, net 4,312,817 2,773,326\\r\\nProperty and equipment, net 173,412 149,875\\r\\nOther non-current assets 284,802 192,246\\r\\nTotal assets $ 10,202,871 $ 7,042,500\\r\\nLiabilities and Stockholders’ Equity\\r\\nCurrent liabilities:\\r\\nCurrent content liabilities $ 2,789,023 $ 2,117,241\\r\\nAccounts payable 253,491 201,581\\r\\nAccrued expenses 140,389 69,746\\r\\nDeferred revenue 346,721 274,586\\r\\nTotal current liabilities 3,529,624 2,663,154\\r\\nNon-current content liabilities 2,026,360 1,575,832\\r\\nLong-term debt 2,371,362 885,849\\r\\nOther non-current liabilities 52,099 59,957\\r\\nTotal liabilities 7,979,445 5,184,792\\r\\nCommitments and contingencies (Note 6)\\r\\nStockholders’ equity:\\r\\nPreferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2015 and 2014; no shares\\r\\nissued and outstanding at December 31, 2015 and 2014 — —\\r\\nCommon stock, $0.001 par value; 4,990,000,000 and 160,000,000 shares authorized at December 31, 2015\\r\\nand December 31, 2014, respectively; 427,940,440 and 422,910,887 issued and outstanding at December 31,\\r\\n2015 and December 31, 2014, respectively 1,324,809 1,042,870\\r\\nAccumulated other comprehensive loss (43,308) (4,446)\\r\\nRetained earnings 941,925 819,284\\r\\nTotal stockholders’ equity 2,223,426 1,857,708\\r\\nTotal liabilities and stockholders’ equity $ 10,202,871 $ 7,042,500\\r\\nSee accompanying notes to consolidated financial statements.\\r\\n41Table of Contents\\r\\nNETFLIX, INC.\\r\\nCONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY\\r\\n(in thousands, except share data)\\r\\nCommon Stock and Additional\\r\\nPaid-in Capital\\r\\nAccumulated \\r\\nOther \\r\\nComprehensive \\r\\n(Loss) Income\\r\\nRetained \\r\\nEarnings\\r\\nTotal \\r\\nStockholders’\\r\\nEquity\\r\\nShares Amount\\r\\nBalances as of December 31, 2012 389,110,169 $ 301,672 $ 2,919 $ 440,082 $ 744,673\\r\\nNet income — — — 112,403 112,403\\r\\nOther comprehensive income — — 656 — 656\\r\\nIssuance of common stock upon exercise of options 11,821,418 124,557 — — 124,557\\r\\nNote conversion 16,317,420 198,208 — — 198,208\\r\\nStock-based compensation expense — 73,100 — — 73,100\\r\\nExcess stock o', score=0.3928497, reference=PdfReference(type='pdf', pages=[40, 41, 42, 43, 44], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, 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However, an estimate\\r\\nof the range of reasonably possible adjustments cannot be made.\\r\\n11. Employee Benefit Plan\\r\\nThe Company maintains a 401(k) savings plan covering substantially all of its employees. Eligible employees may contribute up to 60% of their annual\\r\\nsalary through payroll deductions, but not more than the statutory limits set by the Internal Revenue Service. The Company matches employee contributions at the\\r\\ndiscretion of the Board. During 2015 , 2014 and 2013 , the Company’s matching contributions totaled $11.2 million , $8.3 million and $6.5 million , respectively.\\r\\n12. Segment Information\\r\\nThe Company has three reportable segments: Domestic streaming, International streaming and Domestic DVD. Segment information is presented along the\\r\\nsame lines that the Company’s chief operating decision maker (\"CODM\") reviews the operating results in assessing performance and allocating resources. The\\r\\nCompany’s CODM reviews revenue and contribution profit (loss) for each of the reportable segments. Contribution profit (loss) is defined as revenues less cost of\\r\\nrevenues and marketing expenses incurred by the segment. The Company has aggregated the results of the International operating segments into one reportable\\r\\nsegment because these operating segments share similar long-term economic and other qualitative characteristics.\\r\\nThe Domestic streaming segment derives revenues from monthly membership fees for services consisting solely of streaming content to the members in the\\r\\nUnited States. The International streaming segment derives revenues from monthly membership fees for services consisting solely of streaming content to\\r\\nmembers outside of the United States. The Domestic DVD segment derives revenues from monthly membership fees for services consisting solely of DVD-by\\x02mail. Revenues and the related payment card fees are attributed to the operating segment based on the nature of the underlying membership (streaming or DVD)\\r\\nand the geographic region from which the membership originates. There are no internal revenue transactions between the Company’s segments.\\r\\nThe majority of cost of revenues relate to content expenses directly incurred by the segment. However, in connection with global expansion, content\\r\\nacquired, licensed, and produced increasingly includes global rights. The Company allocates this content between the International and Domestic streaming\\r\\nsegments based on estimated fair market value. Other costs of revenues such as delivery costs are primarily attributed to the operating segment based on amounts\\r\\ndirectly incurred by the segment. Marketing expenses consist primarily of advertising expenses and payments made to our affiliates and device partners which are\\r\\ngenerally included in the segment in which the expenditures are directly incurred.\\r\\nThe Company\\'s long-lived tangible assets were located as follows:\\r\\nAs of December 31,\\r\\n2015 2014\\r\\n(in thousands)\\r\\nUnited States $ 159,566 $ 138,704\\r\\nInternational 13,846 11,171\\r\\n58Table of Contents\\r\\nThe following tables represent segment information for the year ended December 31, 2015:\\r\\nAs of/Year ended December 31, 2015\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nTotal memberships at end of period (1) 44,738 30,024 4,904 —\\r\\nRevenues $ 4,180,339 $ 1,953,435 $ 645,737 $ 6,779,511\\r\\nCost of revenues 2,487,193 1,780,375 323,908 4,591,476\\r\\nMarketing 317,646 506,446 — 824,092\\r\\nContribution profit (loss) $ 1,375,500 $ (333,386) $ 321,829 $ 1,363,943\\r\\nOther operating expenses 1,058,117\\r\\nOperating income 305,826\\r\\nOther income (expense) (163,941)\\r\\nProvision for income taxes 19,244\\r\\nNet income $ 122,641\\r\\nAs of/Year ended December 31, 2015\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nAmortization of content assets 1,905,069 1,500,313 79,380 3,484,762\\r\\nThe following tables represent segment information for the year ended December 31, 2014:\\r\\nAs of/Year ended December 31, 2014\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nTotal memberships at end of period (1) 39,114 18,277 5,767 —\\r\\nRevenues $ 3,431,434 $ 1,308,061 $ 765,161 $ 5,504,656\\r\\nCost of revenues 2,201,761 1,154,117 396,882 3,752,760\\r\\nMarketing 293,453 313,733 — 607,186\\r\\nContribution profit (loss) $ 936,220 $ (159,789) $ 368,279 $ 1,144,710\\r\\nOther operating expenses 742,062\\r\\nOperating income 402,648\\r\\nOther income (expense) (53,279)\\r\\nProvision for income taxes 82,570\\r\\nNet income $ 266,799\\r\\nAs of/Year ended December 31, 2014\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nAmortization of content assets 1,657,673 998,606 71,491 2,727,770\\r\\n59Table of Contents\\r\\nThe following tables represent segment information for the year ended December 31, 2013:\\r\\nAs of/Year ended December 31, 2013\\r\\nDomestic\\r\\nStreaming\\r\\nInternational\\r\\nStreaming\\r\\nDomestic\\r\\nDVD Consolidated\\r\\n(in thousands)\\r\\nTotal memberships at end of period (1) 33,420 10,930 6,930 —\\r\\nRevenues $ 2,751,375 $ 712,390 $ 910,797 $ 4,374,562\\r\\nCost of revenues 1,863,376 782,304 471,523 3,117,203\\r\\nMarketing 265,232 204,418 292 469,942\\r\\nContribution profit (loss) $ 62', score=0.35307175, reference=PdfReference(type='pdf', pages=[60, 61, 62], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='vely. See Note 5 of Item\\r\\n8, Financial Statements and Supplementary Data for additional information.\\r\\nOur primary uses of cash include the acquisition, licensing and production of content, streaming delivery, marketing programs and payroll. Investments in\\r\\noriginal content and in particular content that we produce and own, require more cash upfront relative to licensed content. We expect to significantly increase our\\r\\ninvestments in global streaming content, particularly in original content, which could impact our liquidity and result in future negative free cash flows.\\r\\nAlthough we currently anticipate that cash flows from operations, together with our available funds, will continue to be sufficient to meet our cash needs for\\r\\nat least the next twelve months, to fund our continued content investments, we are likely to raise additional capital in future periods. Our ability to obtain this, or\\r\\nany additional financing that we may choose to, or need to, obtain to finance our international expansion, or investment in original content or otherwise, will\\r\\ndepend on, among other things, our development efforts, business plans, operating performance and the condition of the capital markets at the time we seek\\r\\nfinancing. We may not be able to obtain such financing on terms acceptable to us or at all. If we raise additional funds through the issuance of equity or debt\\r\\nsecurities, those securities may have rights, preferences or privileges senior to the rights of our common stock, and our stockholders may experience dilution.\\r\\n24Table of Contents\\r\\nAs of December 31, 2015, $200.3 million of cash and cash equivalents were held by our foreign subsidiaries. If these funds are needed for our operations in\\r\\nthe U.S., we would be required to accrue and pay U.S. income taxes and foreign withholding taxes on the amount associated with undistributed earnings for certain\\r\\nforeign subsidiaries. As of December 31, 2015, the amount associated with undistributed earnings for certain foreign subsidiaries for which we could be required to\\r\\naccrue and pay taxes is $65.3 million. See Note 10 of Item 8, Financial Statements and Supplementary Data for additional information.\\r\\nFree Cash Flow\\r\\nWe define free cash flow as cash (used in) provided by operating and investing activities excluding the non-operational cash flows from purchases, maturities\\r\\nand sales of short-term investments. We believe free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash\\r\\ngenerated that is available to repay debt obligations, make investments and for certain other activities. Free cash flow is considered a non-GAAP financial measure\\r\\nand should not be considered in isolation of, or as a substitute for, net income, operating income, cash flow (used in) provided by operating activities, or any other\\r\\nmeasure of financial performance or liquidity presented in accordance with GAAP.\\r\\nIn assessing liquidity in relation to our results of operations, we compare free cash flow to net income, noting that the three major recurring differences are\\r\\nexcess content payments over expense, non-cash stock-based compensation expense and other working capital differences. The excess content payments over\\r\\nexpense is variable based on the payment terms of our content agreements and is expected to increase as we enter into more agreements with upfront cash\\r\\npayments, such as licensing and production of original content. In 2015, the ratio of content payments over content expense was between 1.3 and 1.4. Working\\r\\ncapital differences include deferred revenue, taxes and semi-annual interest payments on our outstanding debt. Our receivables from members generally settle\\r\\nquickly and deferred revenue is a source of cash flow.\\r\\nYear Ended December 31,\\r\\n2015 2014 2013\\r\\n(in thousands)\\r\\nNet cash (used in) provided by operating activities $ (749,439) $ 16,483 $ 97,831\\r\\nNet cash used in investing activities (179,192) (42,866) (255,968)\\r\\nNet cash provided by financing activities 1,640,277 541,712 476,264\\r\\nNon-GAAP free cash flow reconciliation:\\r\\nNet cash (used in) provided by operating activities (749,439) 16,483 97,831\\r\\nAcquisition of DVD content assets (77,958) (74,790) (65,927)\\r\\nPurchases of property and equipment (91,248) (69,726) (54,143)\\r\\nOther assets (1,912) 1,334 5,939\\r\\nNon-GAAP free cash flow $ (920,557) $ (126,699) $ (16,300)\\r\\nYear ended December 31, 2015 as compared to the year ended December 31, 2014\\r\\nCash provided by operating activities decreased $765.9 million resulting in net cash used in operating activities of $749.4 million for the year ended\\r\\nDecember 31, 2015. The significant net cash used in operations is due primarily to the increase in investments in streaming content that requires more upfront\\r\\npayments. The payments for content excluding DVD assets increased $1,374.8 million or 40%. In addition we had increased payments associated with higher\\r\\noperating expenses. The increased use of cash was partially offset by a $1,274.9 million or 23% increase in revenues.\\r\\nCash used in investing activities increased $136.3 million, primarily due to a decrease of $108.4 million in the proceeds from sales and maturities of short\\x02term investments, net of purchases. In addition, purchases of property and equipment increased by $21.5 million.\\r\\nCash provided by financing activities increased $1,098.6 million primarily due to the $1,482.4 million net proceeds from the issuance of the 5.50% Notes and\\r\\nthe 5.875% Notes in the year ended December 31, 2015 as compared to the $392.9 million net proceeds from the issuance of the 5.750% Notes in the year ended\\r\\nDecember 31, 2014.\\r\\nFree cash flow was $1,043.2 million lower than net income for the year ended December 31, 2015 primarily due to $1,209.4 million of content cash payments\\r\\nover expense partially offset by $124.7 million of non-cash stock-based compensation expense and $41.5 million of favorable other working capital differences.\\r\\n25Table of Contents\\r\\nFree cash flow was $393.5 million lower than net income for the year ended December 31, 2014 primarily due to $534.2 million of content cash payments\\r\\nover expense partially offset by $115.2 million of non-cash stock-based compensation expense and $25.5 million of favorable other working capital differences.\\r\\nYear ended December 31, 2014 as compared to the year ended December 31, 2013\\r\\nCash provided by operating activities decreased $81.3 million, primarily due to increased payments for content other than DVD assets of $835.1 million or\\r\\n32%, as well as increased payments associated with higher operating expenses. The increased use of c', score=0.34886748, reference=PdfReference(type='pdf', pages=[26, 27, 28], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='ounts disclosed for all periods provided have been retroactively adjusted to reflect the effects of the Stock Split. \\r\\nBasic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per\\r\\nshare is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the\\r\\nperiod. Potential common shares consist of shares issuable upon the assumed conversion of the Company’s Convertible Notes (prior to the conversion of such\\r\\nnotes in April 2013) and incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share, as adjusted for the Stock\\r\\nSplit, is as follows:\\r\\nYear ended December 31,\\r\\n2015 2014 2013\\r\\n(in thousands, except per share data)\\r\\nBasic earnings per share:\\r\\nNet income $ 122,641 $ 266,799 $ 112,403\\r\\nShares used in computation:\\r\\nWeighted-average common shares outstanding 425,889 420,544 407,385\\r\\nBasic earnings per share $ 0.29 $ 0.63 $ 0.28\\r\\nDiluted earnings per share:\\r\\nNet income $ 122,641 $ 266,799 $ 112,403\\r\\nConvertible Notes interest expense, net of tax — — 49\\r\\nNumerator for diluted earnings per share 122,641 266,799 112,452\\r\\nShares used in computation:\\r\\nWeighted-average common shares outstanding 425,889 420,544 407,385\\r\\nConvertible Notes shares — — 5,007\\r\\nEmployee stock options 10,567 11,350 12,935\\r\\nWeighted-average number of shares 436,456 431,894 425,327\\r\\nDiluted earnings per share $ 0.28 $ 0.62 $ 0.26\\r\\n46Table of Contents\\r\\nEmployee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their\\r\\ninclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation, as adjusted for the\\r\\nStock Split:\\r\\nYear ended December 31,\\r\\n2015 2014 2013\\r\\n(in thousands)\\r\\nEmployee stock options 517 917 1,386\\r\\nStock-Based Compensation\\r\\nThe Company grants fully vested non-qualified stock options to its employees on a monthly basis. As a result of immediate vesting, stock-based\\r\\ncompensation expense is fully recognized on the grant date, and no estimate is required for post-vesting option forfeitures. See Note 8 to the consolidated financial\\r\\nstatements for further information regarding stock-based compensation.\\r\\n2. Reclassifications\\r\\nIn addition to the retrospective adoption of ASU 2015-03 and ASU 2015-17 as detailed in Note 1, certain prior year amounts have been reclassified to\\r\\nconform to the current year presentation in the consolidated financial statements.\\r\\nSpecifically, the Company reclassified prepaid content from \"Other current assets\" on the Consolidated Balance Sheets to \"Current content assets, net\". The\\r\\nreclassifications for the years ended December 31, 2014 and 2013, were $40.4 million and $40.9 million respectively. The Company also reclassified the change in\\r\\nprepaid content of $0.4 million and $19.1 million for the years ended December 31, 2014 and 2013, respectively, from \"Other current assets\" to \"Additions to\\r\\nstreaming content assets\" on the Consolidated Statements of Cash Flows.\\r\\n3. Short-term Investments\\r\\nThe Company’s investment policy is consistent with the definition of available-for-sale securities. The Company does not buy and hold securities principally\\r\\nfor the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity and return. From time to time, the\\r\\nCompany may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. The following tables summarize, by\\r\\nmajor security type, the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy and where they are\\r\\nclassified on the Consolidated Balance Sheets.\\r\\nAs of December 31, 2015\\r\\nAmortized\\r\\nCost\\r\\nGross\\r\\nUnrealized\\r\\nGains\\r\\nGross\\r\\nUnrealized\\r\\nLosses\\r\\nEstimated\\r\\nFair Value\\r\\nCash and cash\\r\\nequivalents\\r\\nShort-term\\r\\ninvestments\\r\\nNon\\x02current\\r\\nassets (1)\\r\\n(in thousands)\\r\\nCash $ 1,708,220 $ — $ — $ 1,708,220 $ 1,706,592 $ — $ 1,628\\r\\nLevel 1 securities:\\r\\nMoney market funds 107,199 — — 107,199 102,738 — 4,461\\r\\nLevel 2 securities:\\r\\nCorporate debt securities 240,867 154 (409) 240,612 — 240,612 —\\r\\nGovernment securities 235,252 — (1,046) 234,206 — 234,206 —\\r\\nAgency securities 26,576 — (9) 26,567 — 26,567 —\\r\\nTotal $ 2,318,114 $ 154 $ (1,464) $ 2,316,804 $ 1,809,330 $ 501,385 $ 6,089\\r\\n47Table of Contents\\r\\nAs of December 31, 2014\\r\\nAmortized\\r\\nCost\\r\\nGross\\r\\nUnrealized\\r\\nGains\\r\\nGross\\r\\nUnrealized\\r\\nLosses\\r\\nEstimated\\r\\nFair Value\\r\\nCash and cash\\r\\nequivalents\\r\\nShort-term\\r\\ninvestments\\r\\nNon-current\\r\\nassets (1)\\r\\n(in thousands)\\r\\nCash $ 1,007,543 $ — $ — $ 1,007,543 $ 1,007,543 $ — $ —\\r\\nLevel 1 securities:\\r\\nMoney market funds 111,759 — — 111,759 106,065 — 5,694\\r\\nLevel 2 securities:\\r\\nCorporate debt securities 295,500 432 (199) 295,733 — 295,733 —\\r\\nGovernment securities 168,749 120 (95) 168,774 — 168,774 —\\r\\nAsset and mortgage-backed\\r\\nsecurities 112 — — 112 — 112 —\\r\\nCertificate of deposits 3,600 — — 3,600 — 3,600 —\\r\\nAgency securities 26,665 5 (1) 26,669 — 26,669 —\\r\\nTotal $ 1,613,928 $ 557 $ (295) $ 1,614,190 $ 1,113,608 $ 494,888 $ 5,694\\r\\n(1) Primarily restricted cash that is related to workers compensation deposits and letter of credit agreements.\\r\\nFair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or\\r\\nliability. The hierarchy level assigned to each security in the Company’s available-for-sale portfolio and cash equivalents is based on its assessment of the\\r\\ntransparency and reliability of the inputs used in the valuation of such instrument at the measurement date. The fair value of available-for-sale securities and cash\\r\\nequivalents included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. The fair value of available-for\\x02sale securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in\\r\\nmarkets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from an independent pricing service and\\r\\nwere evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well\\x02established independent pricing vendors and broker-dealers. The Company’s procedures include controls to ensure that appropriate fair values are recorded, such as\\r\\ncomparing prices obtai', score=0.32924125, reference=PdfReference(type='pdf', pages=[48, 49, 50], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489))), Snippet(type='text', content='ipal of interest bearing notes outstanding.\\r\\nInterest and Other Income (Expense)\\r\\nInterest and other income (expense) consists primarily of interest earned on cash, cash equivalents and short-term investments and foreign exchange gains\\r\\nand losses on foreign currency denominated balances.\\r\\nYear Ended December 31, Change\\r\\n2015 2014 2013 2015 vs. 2014 2014 vs. 2013\\r\\n(in thousands, except percentages)\\r\\nInterest and other income (expense) $ (31,225) $ (3,060) $ (3,002) $ (28,165) (920)% $ (58) (2)%\\r\\nYear ended December 31, 2015 as compared to the year ended December 31, 2014\\r\\nInterest and other income (expense) decreased for the year ended December 31, 2015 as compared to the prior year due to a $37.3 million foreign exchange\\r\\nloss, incurred primarily in the first quarter of 2015. The foreign exchange loss was primarily driven by the remeasurement of significant content liabilities\\r\\ndenominated in currencies other than functional currencies in our European entities coupled with the strengthening of the U.S. dollar.\\r\\nYear ended December 31, 2014 as compared to the year ended December 31, 2013\\r\\nInterest and other income (expense) for the year ended December 31, 2014 was relatively flat as compared to the prior year. Losses on foreign currency\\r\\ndenominated balances were $8.2 million and $8.4 million for the years ended December 31, 2014 and 2013, respectively.\\r\\nExtinguishment of Debt\\r\\nIn connection with the redemption of the outstanding $200.0 million aggregate principal amount of the 8.50% Notes, we recognized a loss on extinguishment\\r\\nof debt of $25.1 million in the year ended December 31, 2013, which consisted of expenses associated with the redemption, including a $19.4 million premium\\r\\npayment pursuant to the make-whole provision in the indenture governing the 8.50% Notes. For further detail see Note 5 of Item 8, Financial Statements and\\r\\nSupplementary Data.\\r\\n23Table of Contents\\r\\nProvision for Income Taxes\\r\\nYear Ended December 31, Change\\r\\n2015 2014 2013 2015 vs. 2014 2014 vs. 2013\\r\\n(in thousands, except percentages)\\r\\nProvision for income taxes $ 19,244 $ 82,570 $ 58,671 $ (63,326) (77)% 23,899 41%\\r\\nEffective tax rate 14% 24% 34%\\r\\nYear ended December 31, 2015 as compared to the year ended December 31, 2014\\r\\nThe decrease in our effective tax rate for the year ended December 31, 2015 as compared to the year ended December 31, 2014 is mainly due to an increase\\r\\nin R&D credits and a decrease in state and local income taxes.\\r\\nIn 2015, the difference between our 14% effective tax rate and the Federal statutory rate of 35% was $30.4 million primarily due to a $13.4 million release of\\r\\ntax reserves on previously unrecognized tax benefits as a result of an IRS audit settlement leading to the reassessment of our reserves for all open years, $16.5\\r\\nmillion related to the retroactive reinstatement of the 2015 Federal research and development (“R&D”) credit and the California R&D credit; partially offset by\\r\\nstate income taxes, foreign taxes and nondeductible expenses.\\r\\nOn December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 (H.R. 2029) was signed into law which retroactively and permanently\\r\\nextended the Federal R&D credit from January 1, 2015. As a result, we recognized the retroactive benefit of the 2015 R&D credit as a discrete item in the fourth\\r\\nquarter of 2015, the period in which the legislation was enacted.\\r\\nYear ended December 31, 2014 as compared to the year ended December 31, 2013\\r\\nThe decrease in our effective tax rate for the year ended December 31, 2014 as compared to the year ended December 31, 2013 was primarily attributable to\\r\\nthe $38.6 million release of tax reserves on previously unrecognized tax benefits.\\r\\nIn 2014, the difference between our 24% effective tax rate and the federal statutory rate of 35% was $39.7 million primarily due to a $38.6 million release of\\r\\ntax reserves on previously unrecognized tax benefits as a result of an IRS Appeals settlement for the tax years 2008-2009 leading to the reassessment of our\\r\\nreserves for all open years, $10.7 million related to the retroactive reinstatement of the 2014 Federal R&D credit and the California R&D credit; partially offset by\\r\\nstate income taxes, foreign taxes and nondeductible expenses.\\r\\nOn December 19, 2014, the Tax Increase Prevention Act of 2014 (H.R. 5771) was signed into law which retroactively extended the Federal R&D credit from\\r\\nJanuary 1, 2014 through December 31, 2014. As a result, we recognized the retroactive benefit of the 2014 Federal R&D credit as a discrete item in the fourth\\r\\nquarter of 2014, the period in which the legislation was enacted.\\r\\nLiquidity and Capital Resources\\r\\nCash, cash equivalents and short-term investments increased $702.2 million to $2,310.7 million from $1,608.5 million as of December 31, 2015 and 2014,\\r\\nrespectively. In February 2015, we issued $1,500.0 million of long-term debt and in February 2014 we issued $400.0 million of long-term debt. The increases in\\r\\ncash in the year ended December 31, 2015 associated with the issuance of debt was partially offset by cash outflows from operations and investing activities. Long\\x02term debt, net of debt issuance costs, was $2,371.4 million and $885.8 million as of December 31, 2015 and December 31, 2014, respectively. See Note 5 of Item\\r\\n8, Financial Statements and Supplementary Data for additional information.\\r\\nOur primary uses of cash include the acquisition, licensing and production of content, streaming delivery, marketing programs and payroll. Investments in\\r\\noriginal content and in particular content that we produce and own, require more cash upfront relative to licensed content. We expect to significantly increase our\\r\\ninvestments in global streaming content, particularly in original content, which could impact our liquidity and result in future negative free cash flows.\\r\\nAlthough we currently anticipate that cash flows from operations, together with our available funds, will continue to be sufficient to meet our cash needs for\\r\\nat least the next twelve months, to fund our continued content investments, we are likely to raise additional capital in future periods. Our ability to obtain this, or\\r\\nany additional financing that we may choose to, or need to, obtain to finance our international expansion, or investment in original content or otherwise, will\\r\\ndepend on, among other things, our development efforts, business plans, operating performance and the condition of the capital markets at the time we seek\\r\\nfinancing. We may not be able to obtain such financing on terms acceptable to us or at all. If we raise addition', score=0.30361873, reference=PdfReference(type='pdf', pages=[25, 26], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=37637374a0da28fa0bd60e866cdedc023a720363a8ed2170cabbf2ac018b940c9ec8a4097f5ddcf174587c2004bdbb5161a3e2e91ed192945a502be379287cee84f5ed32f859609d1eb5e3e2881d44a3110afa69b6980ff7631f79357df84271529b5a132e81c5738feeabc24f104795ec37092ec6e7b63547fb87e5218f2119f57b8d07d2d99f988f72c972c46f66a8d832c731a0aa73dc790208a07b53f33b2324c4ac7a803341aac65c957add5a83be974a194403b1f7070f0c60a71188831596e2ae6f652e642da56f0cd749685c84954dc42dd7dd4db5fee9fac02f5e1caebd07b9a6dd3148d0af5998eb8749b7046c2e4c424af7e5b26da9e383982ac8', error_message=None, size=578489))), Snippet(type='text', content='OF STOCKHOLDERS’ EQUITY\\r\\n(in thousands, except share data)\\r\\nCommon Stock and Additional\\r\\nPaid-in Capital\\r\\nAccumulated \\r\\nOther \\r\\nComprehensive \\r\\n(Loss) Income\\r\\nRetained \\r\\nEarnings\\r\\nTotal \\r\\nStockholders’\\r\\nEquity\\r\\nShares Amount\\r\\nBalances as of December 31, 2012 389,110,169 $ 301,672 $ 2,919 $ 440,082 $ 744,673\\r\\nNet income — — — 112,403 112,403\\r\\nOther comprehensive income — — 656 — 656\\r\\nIssuance of common stock upon exercise of options 11,821,418 124,557 — — 124,557\\r\\nNote conversion 16,317,420 198,208 — — 198,208\\r\\nStock-based compensation expense — 73,100 — — 73,100\\r\\nExcess stock option income tax benefits — 79,964 — — 79,964\\r\\nBalances as of December 31, 2013 417,249,007 $ 777,501 $ 3,575 $ 552,485 $1,333,561\\r\\nNet income — — — 266,799 266,799\\r\\nOther comprehensive loss — — (8,021) — (8,021)\\r\\nIssuance of common stock upon exercise of options 5,661,880 61,190 — — 61,190\\r\\nStock-based compensation expense — 115,239 — — 115,239\\r\\nExcess stock option income tax benefits — 88,940 — — 88,940\\r\\nBalances as of December 31, 2014 422,910,887 $ 1,042,870 $ (4,446) $ 819,284 $1,857,708\\r\\nNet income — — — 122,641 122,641\\r\\nOther comprehensive loss — — (38,862) — (38,862)\\r\\nIssuance of common stock upon exercise of options 5,029,553 77,334 — — 77,334\\r\\nStock-based compensation expense — 124,725 — — 124,725\\r\\nExcess stock option income tax benefits — 79,880 — — 79,880\\r\\nBalances as of December 31, 2015 427,940,440 $ 1,324,809 $ (43,308) $ 941,925 $2,223,426\\r\\nSee accompanying notes to consolidated financial statements.\\r\\n42Table of Contents\\r\\nNETFLIX, INC.\\r\\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\\r\\n1. Organization and Summary of Significant Accounting Policies\\r\\nDescription of Business\\r\\nNetflix, Inc. (the “Company”) was incorporated on August 29, 1997 and began operations on April 14, 1998. The Company is the world’s leading Internet\\r\\ntelevision network with over 75 million streaming members in over 190 countries enjoying more than 125 million hours of hours of TV shows and movies per day,\\r\\nincluding original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen.\\r\\nMembers can play, pause and resume watching, all without commercials or commitments. Additionally, in the United States (\"U.S.\"), members can receive DVDs.\\r\\nThe Company has three reportable segments, Domestic streaming, International streaming and Domestic DVD. A majority of the Company’s revenues are\\r\\ngenerated in the United States, and substantially all of the Company’s long-lived tangible assets are held in the United States. The Company’s revenues are derived\\r\\nfrom monthly membership fees.\\r\\nBasis of Presentation\\r\\nThe consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have\\r\\nbeen eliminated.\\r\\nUse of Estimates\\r\\nThe preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires\\r\\nmanagement to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of\\r\\nthe financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and\\r\\nassumptions include the amortization policy for the streaming content assets; the recognition and measurement of income tax assets and liabilities; and the\\r\\nvaluation of stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to\\r\\nbe reasonable under the circumstances. Actual results may differ from these estimates.\\r\\nStock Split\\r\\nOn July 14, 2015, the Company completed a seven -for-one stock split in the form of a stock dividend. References made to outstanding shares or per share\\r\\namounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect this seven -for-one stock\\r\\nsplit. The number of authorized shares as reflected on the Consolidated Balance Sheets was not affected by the stock split and accordingly has not been adjusted.\\r\\nSee Note 8 for additional information.\\r\\nAccounting Guidance Adopted in 2015\\r\\nIn April 2015, the Financial Accounting Standards Board (\"FASB\") issued Accounting Standards Update (\"ASU\") 2015-05, Customer\\'s Accounting for Fees\\r\\nPaid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a\\r\\ncloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the\\r\\nacquisition of other software licenses. If the arrangement does not include a software license, the customer should account for a cloud computing arrangement as a\\r\\nservice contract. The Company elected to early adopt the ASU in the third quarter of 2015 and has applied the guidance prospectively to all arrangements. The\\r\\nimpact of the adoption of the ASU was not material to the Company\\'s consolidated financial statements.\\r\\nIn April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs which changes the presentation of debt issuance costs in\\r\\nfinancial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an\\r\\nasset. Amortization of the costs will continue to be reported as interest expense. The Company elected to early adopt ASU 2015-03 as of December 31, 2015, and\\r\\nretrospectively reclassifed $14.2 million of debt issuance costs associated with the Company\\'s long-term debt as of December 31, 2014 from other non-current\\r\\nassets to long-term debt.\\r\\nIn November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred income taxes.\\r\\nThe amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The\\r\\nCompany has elected to early adopt ASU 2015-17 as\\r\\n43Table of Contents\\r\\nof December 31, 2015 and retrospectively applied ASU 2015-17 to all periods presented. As of December 31, 2014 the Company reclassified $13.4 million of\\r\\ndeferred tax assets from \"Other current assets\" to \"Other non-current assets\" on the Consolidated Balance Sheets.\\r\\nAccounting Guidance Not Yet Adopted\\r\\nIn May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ', score=0.3025976, reference=PdfReference(type='pdf', pages=[44, 45, 46], file=FileModel(name='netflix-10k.pdf', id='4fecb1e0-3874-4706-8d7e-2962574401a9', metadata={'document_type': '10k', 'published': '2016-01-28'}, created_on='2025-07-03T20:36:49.488104873Z', updated_on='2025-07-03T20:37:01.426460790Z', status='Available', percent_done=1.0, signed_url='https://storage.googleapis.com/knowledge-prod-files/0f8f519e-6a02-42a7-a901-fe1c0dd33e52%2Fd00cf68c-0be6-40b4-b0f1-394afa7c553c%2F4fecb1e0-3874-4706-8d7e-2962574401a9.pdf?X-Goog-Algorithm=GOOG4-RSA-SHA256&X-Goog-Credential=ke-prod-1%40pc-knowledge-prod.iam.gserviceaccount.com%2F20250703%2Fauto%2Fstorage%2Fgoog4_request&X-Goog-Date=20250703T211631Z&X-Goog-Expires=3600&X-Goog-SignedHeaders=host&response-content-disposition=inline&response-content-type=application%2Fpdf&X-Goog-Signature=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', error_message=None, size=578489)))]\n"
          ]
        }
      ],
      "source": [
        "response = assistant.context(\n",
        "    query=\"Who is the Chief Financial Officer of Netflix?\",\n",
        "    # Uncomment to filter by metadata\n",
        "    # filter={ \"document_type\": { \"$eq\": \"10k\" } }\n",
        ")\n",
        "\n",
        "print(response.snippets)"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "BxVk0SFhYvGY"
      },
      "source": [
        "### Analyze the response\n",
        "The response object returning from Assistant has 2 important fields: `snippets` and `usage`. First let's fetch the relevant `snippets` and explore them."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 13,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "ZexJmncfV2BD",
        "outputId": "2aeb0ca7-69cf-4442-ae14-4874271c6a26"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "\"David Wells\" in content - True\n"
          ]
        }
      ],
      "source": [
        "# Snippets are ordered by relevancy (most relevant first)\n",
        "most_relevant_snippet = response.snippets[0]\n",
        "\n",
        "# content is the actuall text data stored in the snippet\n",
        "content = most_relevant_snippet.content\n",
        "\n",
        "# Let's make sure David Wells, Netflix CFO in 2016 appears in the snippet\n",
        "print(f'\"David Wells\" in content - {\"David Wells\" in content}')"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "KZXCxrVbarN8"
      },
      "source": [
        "### Use context references"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 14,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "rrQiWczOaqEk",
        "outputId": "74b30e4a-b34e-4da0-8d67-df11cd2aed4c"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "The snippets comes from document: netflix-10k.pdf on pages: [70, 71, 72]\n"
          ]
        }
      ],
      "source": [
        "# reference is the document and page the snippet comes from\n",
        "reference = most_relevant_snippet.reference\n",
        "\n",
        "# Let'e print the document name and the relevant page:\n",
        "print(f\"The snippets comes from document: {reference.file.name} on pages: {reference.pages}\")"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "2etu-VCEx4wz"
      },
      "source": [
        "### Deep dive - context response\n",
        "\n",
        "Let's review the context object returning with more details:\n",
        "there are 3 main keys: `snippet.content` - which is the content of the snippet, `snippet.score` - which is the calculated relevance score of the snippet in the range [0, 1] and `snippet.reference`.\n",
        "\n",
        "Reference has two attributes: `snippet.reference.pages` and `snippet.reference.file`, the latter has the same file information like [Describe File](https://docs.pinecone.io/reference/api/2025-04/assistant/describe_file).\n",
        "\n"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "fQaVSuT3cMh4"
      },
      "source": [
        "## 3. Use Assistant context with an LLM\n",
        "In this demonstration we will show how to use Pinecone Assistant Context API with Anthropic's Claude model to generate an answer. This can use any model you'd like: proprietary, open-source, local or as-a-service\n",
        "\n",
        "### Install Anthropic SDK"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 16,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "mWzxqUbfdaHv",
        "outputId": "9b5f6104-49c3-4d9a-df61-b4ddecc3cefe"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "Note: you may need to restart the kernel to use updated packages.\n"
          ]
        }
      ],
      "source": [
        "%pip install -qU \\\n",
        "     anthropic==0.54.0"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "### Set the Anthropic API key\n",
        "\n",
        "Next, we'll need to get a [Claude API key](https://docs.anthropic.com/en/api/overview). The code below will prompt you to enter it and then set it in the environment."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 17,
      "metadata": {
        "id": "aDbeiwUJdZ5P"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "Anthropic API key not found in environment.\n",
            "Anthropic API key saved to environment.\n"
          ]
        }
      ],
      "source": [
        "import anthropic\n",
        "\n",
        "def get_anthropic_api_key():\n",
        "    \"\"\"\n",
        "    Get Anthropic API key from environment variable or prompt user for input.\n",
        "    Returns the API key as a string.\n",
        "    \"\"\"\n",
        "\n",
        "    api_key = os.environ.get(\"ANTHROPIC_API_KEY\")\n",
        "    \n",
        "    if api_key is None:\n",
        "        print(\"Anthropic API key not found in environment.\")\n",
        "        try:\n",
        "            api_key = getpass(\"Please enter your Anthropic API key: \")\n",
        "            # Save to environment for future use in session\n",
        "            os.environ[\"ANTHROPIC_API_KEY\"] = api_key\n",
        "            print(\"Anthropic API key saved to environment.\")\n",
        "        except Exception as e:\n",
        "            print(f\"Error getting Anthropic API key: {e}\")\n",
        "            return None\n",
        "    \n",
        "    return api_key\n",
        "\n",
        "ANTHROPIC_API_KEY = get_anthropic_api_key()"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "### Create the client"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 18,
      "metadata": {},
      "outputs": [],
      "source": [
        "anthropic_client = anthropic.Anthropic(\n",
        "    # defaults to os.environ.get(\"ANTHROPIC_API_KEY\")\n",
        "    # or uncomment and add the API key inline\n",
        "    # api_key = \"my_api_key\"\n",
        ")"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "g_2MgxQBevlZ"
      },
      "source": [
        "### Prepare prompts\n",
        "\n",
        "Using the first 5 snippets as context, we'll prepare a prompt with the user query to send to Anthropic."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 19,
      "metadata": {
        "id": "64oh2cCyqx8l"
      },
      "outputs": [],
      "source": [
        "# Let's use the first 5 snippets as our context\n",
        "\n",
        "contents = []\n",
        "\n",
        "for snippet in response.snippets[:5]:\n",
        "  contents.append(\n",
        "      {\n",
        "          \"type\": snippet.type,\n",
        "          \"content\": snippet.content,\n",
        "          \"score\": snippet.score,\n",
        "          \"file_name\": snippet.reference.file.name,\n",
        "          \"file_page\": snippet.reference.pages\n",
        "      }\n",
        ")"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 20,
      "metadata": {
        "id": "MCV9sBmod0pS"
      },
      "outputs": [],
      "source": [
        "system_prompt = \"\"\"\n",
        "  you are a helpful knowledge assistant, use the context provided\n",
        "  in the <context></context> tags to answer the question provided in\n",
        "  the <question></question> tags. Keep you answers concise please\n",
        "\"\"\".strip()\n",
        "\n",
        "question = \"Who is the Chief Financial Officer of Netflix?\"\n",
        "\n",
        "user_message = f\"\"\"\n",
        "  answer the following question using the context:\n",
        "\n",
        "  <context>{contents}</context>\n",
        "\n",
        "  <question>{question}</question>\n",
        "\"\"\""
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "wNb8zamFfRuN"
      },
      "source": [
        "### Use Claude to generate a response"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 21,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "7s3o5O6ne_U_",
        "outputId": "7d1f8883-e911-4793-ff16-07bfd584af4c"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "According to the context, David Wells is the Chief Financial Officer (CFO) of Netflix as of January 28, 2016.\n"
          ]
        }
      ],
      "source": [
        "message = anthropic_client.messages.create(\n",
        "    model=\"claude-3-5-sonnet-20241022\",\n",
        "    system=system_prompt,\n",
        "    max_tokens=1024,\n",
        "    messages=[\n",
        "        {\"role\": \"user\", \"content\": user_message}\n",
        "    ]\n",
        ")\n",
        "print(message.content[0].text)"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {
        "id": "SjEHvLL4gcVu"
      },
      "source": [
        "## 5. Validate results with Assistant Chat\n",
        "\n",
        "The Assistant Chat endpoint provides end-to-end answers to question.."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 22,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "_03A303iV9ro",
        "outputId": "fd95b12b-c8a5-480d-b87c-4883f614d3b1"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "According to the search results, the Chief Financial Officer of Netflix is David Wells. This can be seen in the signature line of Exhibit 31.2, which is a certification signed by \"David Wells, Chief Financial Officer\".\n"
          ]
        }
      ],
      "source": [
        "# create a single message query\n",
        "message = [Message(role= \"user\", content =\"Who is the Chief Financial Officer of Netflix?\")]\n",
        "\n",
        "chat_resp = assistant.chat(messages=message, model='claude-3-5-sonnet')\n",
        "\n",
        "# Print the assistant response\n",
        "answer = chat_resp.message.content\n",
        "print(answer)"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "The response also contains the citations:"
      ]
    },
    {
      "cell_type": "code",
      "execution_count": 23,
      "metadata": {
        "colab": {
          "base_uri": "https://localhost:8080/"
        },
        "id": "XHCX-pXQz9Fu",
        "outputId": "792d1969-e963-467d-9d21-9d5c0c4a2ce3"
      },
      "outputs": [
        {
          "name": "stdout",
          "output_type": "stream",
          "text": [
            "The answer was generated using file: netflix-10k.pdf pages: [66, 67, 68, 69, 70]\n"
          ]
        }
      ],
      "source": [
        "citations = chat_resp.citations\n",
        "\n",
        "filename = citations[0]['references'][0]['file']['name']\n",
        "pages = citations[0]['references'][0]['pages']\n",
        "# print the files and the pages\n",
        "print(f\"The answer was generated using file: {filename} pages: {pages}\")"
      ]
    },
    {
      "cell_type": "markdown",
      "metadata": {},
      "source": [
        "## Cleanup Resources\n",
        "\n",
        "Run this when you're done experimenting to delete the Assistant."
      ]
    },
    {
      "cell_type": "code",
      "execution_count": null,
      "metadata": {
        "id": "VDEqNJiIxP29"
      },
      "outputs": [],
      "source": [
        "pc.assistant.delete_assistant(\n",
        "    assistant_name=\"my-cool-context-assistant\", \n",
        ")"
      ]
    }
  ],
  "metadata": {
    "colab": {
      "provenance": []
    },
    "kernelspec": {
      "display_name": ".venv",
      "language": "python",
      "name": "python3"
    },
    "language_info": {
      "codemirror_mode": {
        "name": "ipython",
        "version": 3
      },
      "file_extension": ".py",
      "mimetype": "text/x-python",
      "name": "python",
      "nbconvert_exporter": "python",
      "pygments_lexer": "ipython3",
      "version": "3.12.9"
    }
  },
  "nbformat": 4,
  "nbformat_minor": 0
}
